Essays on Concept of Path Dependency Assignment

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The paper "Concept of Path Dependency" is a great example of an assignment on macro and microeconomics. The concept of ‘ path dependency’ refers to underlying forces that are self-regulating and self-reinforcing which leads to organizational locks-in. These forces have a direct impact on individual and corporate decisions (Sydow, Schreyogg & Koch, 2009). The concept explains how a certain model guides every activity within a certain economy. This mechanism leads to behavioral development resulting in institutional rigidity. However, it is important to understand the aim of this concept. In most cases, there is a lot of deviation from the set goals especially in organizations that allow too much flexibility.

To ensure that every individual within the institution sticks to corporate objective, path dependency is created. It is further argued that the path dependency model emphasise on continuity rather than change (Martin, 2010). This implies that proponents of this particular economic model insist on strict adherence to established traditions. In this case, people tend to rely on experiences and occurrences when making choices, especially in commercial transactions. This theory preserves people’ s way of doing things and economic prosperity where the model adopted is effective enough to facilitate productivity. In reference to Australia’ s history, path dependency is linked to organizational routines that shape individual behavior (Botterill, 2011).

Most institutions in Australia, especially in public sector, have maintained this model for long period. However, this idea has received sharp criticism from change-oriented economists and social scientists. This is due to its tendency to resist emerging changes. A good number of scholars argue that adopting the path dependency model hinders innovation and creativity (Tont, Argent & Plummer, 2012).

It, therefore, leaves no room for corrective measures especially when the model in use proves ineffective in addressing current social and economic challenges. Nevertheless, the path dependency concept plays a critical role in harmonizing transition, change as well as continuity in institutional management. The emergence of technological advances in both service and production sectors calls for change in operation without affecting desirable aspects of organizations.

References

Banks, G. (2010, December). Successful reform: past lessons, future challenges. In Annual Forecasting Conference of the Australian Business Economists.

Botterill, L. C. (2011). Life and death of an institution: the case of collective wheat marketing in Australia. Public Administration, 89(2), 629-643.

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Bunker, R. (2012). Reviewing the path dependency in Australian metropolitan planning. Urban Policy and Research, 30(4), 443-452.

Dodgson, M., Hughes, A., Foster, J., & Metcalfe, S. (2011). Systems thinking, market failure, and the development of innovation policy: The case of Australia. Research Policy, 40(9), 1145-1156.

Gupta, U. (2012). Enterprise Agreement 2009-2012, Deakin University.

Heinmiller, T. (2009). Path dependency and collective action in common pool governance. International Journal of the Commons, 3(1), 131-147.

Howlett, M. (2009). Process sequencing policy dynamics: beyond homeostasis and path dependency. Journal of public policy, 29(3), 241-62.

Kendall, M. (2013). Drought and its role in shaping water policy in Australia. In Drought in Arid and Semi-Arid Regions (pp. 451-467). Springer Netherlands.

Martin, R. (2010). Roepke Lecture in Economic Geography—Rethinking Regional Path Dependence: Beyond Lock‐in to Evolution. Economic geography, 86(1), 1-27.

Meredith, D., & Dyster, B. (2012). Australia in the global economy: continuity and change. Cambridge University Press.

Schaper, M. T. (2010). Competition law, enforcement and the Australian small business sector. Small Enterprise Research, 17(1), 7-18.

Stewart, A. (2011). Fair Work Australia: The Commission Reborn. Journal of Industrial Relations, 53(5), 563-577.

Sydow, J., Schreyögg, G., & Koch, J. (2009). Organizational path dependence: Opening the black box. Academy of Management Review, 34(4), 689-709.

Thornthwaite, L., & Sheldon, P. (2011). Fair Work Australia: employer association policies, industrial law and the changing role of the tribunal. Journal of Industrial Relations, 53(5), 616-631.

Tonts, M., Argent, N., & Plummer, P. (2012). Evolutionary perspectives on rural Australia. Geographical Research, 50(3), 291-303.

Van der Heijden, J. (2013). Different but equally plausible narratives of policy transformation: A plea for theoretical pluralism. International Political Science Review, 34(1), 57-73.

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