CO SCI 136 Lecture Notes - Lecture 17: Path Dependence, Bricolage, Human Capital
Document Summary
5 where to find the next big thing. Arise exogenously (from changes in technology, consumer preferences, other attributes of context) Search must systematically scan the environment to discover opportunities (= find mountain) 1st order path dependence identified opportunities are liked to knowledge & information of an already existing path. Entrepreneurs different from those that don"t (either ability to see or exploit) Are created endogenously (by actions, reactions & enactment of entrepreneurs exploring new ways to produce new products/services) Don"t search: they act and observe the response of consumers/market (= build mountain) may change plans. Path dependent small differences in initial decisions can lead to large differences over time (action is affected by path & affects the path) Opportunities cannot be understood until they exist, and they only exist after they are enacted. May or may not differ ex ante. Even small differences can lead some to form opportunities while others don"t.
