The concept of path dependence has often been criticized as vague and only
narrowly applicable. Although we can find some very refined definitions of the
concept, we also find a wide range of empirical phenomena being described as
path-dependent. We argue that more detailed accounts of the positive feedback
mechanisms that form paths can take path dependence beyond this state of being
overdetermined, but under-specified. Reviewing three well-described cases of
path-dependent dynamics in technology markets, regional clustering, and
organizations, we define a core set of positive feedback mechanisms that
constitute path dependence at different analysis levels and clarify the
relationship between positive feedback and increasing returns. We show that
path-dependent processes, that is, processes driven by positive feedback that
veer toward rigidity or lock-in, can be (but do not have to be) found under
many labels, including structural inertia, coevolution, or institutional
persistence. We conclude that a precise definition of path dependence does not
need to be at odds with the concept’s widespread use in understanding
organizational and industrial development processes
