The chapter challenges the commonly held notion in the capabilities approach, arising out of over emphasis on path dependency, that capability development follows a single path dependent route, which is determined positively by interrelatedness among existing technologies. It queries the fascination especially within the empirical literature with examining a single, successful choice. The chapter argues, like Penrose (1959) and Hamel and Prahalad (1994), that a firm seldom considers only one strategic capability development route. Often, a route is chosen from a bounded option set, anchored by the ‘do- nothing’ default. This is supported by empirical case evidence, which also suggests that, in some instances, technological interrelatedness is not a major factor influencing the development of capabilities from the available options.
|Title of host publication||Handbook of Research on Strategy and Foresight|
|Editors||Laura Anna Constanzo, Robert Bradley Mackay|
|Place of Publication||Cheltenham, UK|
|Number of pages||21|
|Publication status||Published - 31 Mar 2009|
- path dependency
- Dundee jute industry
- organisational foresight
Masrani, S. K., & McKiernan, P. (2009). Addressing path dependency in the capabilities approach: historicism and foresight meet on the road less travelled. In L. A. Constanzo, & R. B. Mackay (Eds.), Handbook of Research on Strategy and Foresight (pp. 485-505). Cheltenham, UK.