The Ambidextrous Effects of Path Dependence

Hyunsang Pyo; Seungwha Andy Chung

Hyunsang Pyo Joint Forces Military University, Daejeon, Korea
Seungwha Andy Chung School of Business, Yonsei University, Seoul, Korea

Keywords: Path Dependence, Lock-in, Learning Capability, R&D Intensity, Organizational Slack, Related Diversification, Unrelated Diversification

Abstract

The research idea of this study is to explore the ambidextrous effects of self-reinforcing mechanisms on organizational path dependence. In this paper, we present a conceptual model based on the duration of R&D intensity: the longer a firm maintains its R&D intensity, the more it will engage in diversification. In addition, we apply the effects of R&D intensity duration to the organizational slack effect. When a firm‟s level of organizational slack is high and is combined with duration of R&D intensity, it will create the explorative learning capability of the firm. On the contrary, if a firm‟s level of organizational slack is low and is combined with duration of R&D intensity, it will create the lock-in path of the firm. We can apply this idea to both the explorative learning capability and the lock-in path via the type of firm‟s diversification. The explorative learning capability tends to be coupled with the unrelated diversification, whereas the lock-in path tends to be coupled with related diversification.

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