26th International Association for Management of Technology Conference - IAMOT 2017

Firms increasingly depend on technological advancements and need to be able to adapt to technological shifts. However, path-dependent processes may cause lock-in situations which hinder the adoption of more efficient technological options. In a path-dependent process small events trigger positive feedback loops which gradually reduce alternative options until a pattern becomes dominant. A rigidified action pattern builds up as an unintended consequence of former decisions and positive feedback processes. The resulting lock-in describes a situation in which flexibility is lost and only a restricted amount of options is selectable. Consequently, path-dependent developments may lead to unintended developments of technologies and technological standards, limit innovation capabilities of firms and rigidify business models. While technology management frameworks address different aspects to recognize and exploit technological opportunities, less attention has been paid on the avoidance of lock-in situations. Therefore, the objective of this research is to analyse how different technology management activities can help to avoid technological lock-in. This contribution is based on a review of technology management frameworks and a qualitative, exploratory research conducted in 15 companies operating in high- and medium-technology branches. The semi-structured expert-interviews with representatives from the top-management, R&D and technology management are used to identify how firms perceive lock-ins in the context of technological shifts. The findings are compared to technology management activities as described in literature in order to identify actions to avoid path-dependent developments. In addition, recommendations from the fields of strategic management and organization studies are considered and related to the technology management framework. The research shows at which levels firms experience path dependence and different characteristics of lock-ins. Appropriate measures to recognize path-dependent processes and to avoid lock-in situations are discussed in relation to the technology management activities. Technology management is therefore not limited to methods to analyse, develop and integrate technologies, but can also integrate measures to recognize self-reinforcing mechanisms on technological, organizational and individual levels. The intention of this paper is to show how technology oriented firms experience path dependence and how technology management activities can help to avoid lock-in situations. Practitioners are provided with a compact description of the theoretical concept of path dependence and they learn about the practical implications.