what is path dependency 
path dependency explains the continued use of a product or practice based on historical preference or use a company may persist in the use of a product or practice even if newer more efficient alternatives are available path dependency occurs because it is often easier or more cost effective to continue along an already set path than to create an entirely new one understanding path dependencyscholars describe path dependence in the context of the historical institutionalist approach to political science the theory behind the approach is that institutions change less than might be expected and constrain advancement the reason for the lack of change is that policymakers make assumptions make cautious decisions and fail to learn from experience path dependency can also be a result of an inability or a reluctance to commit to change because of the cost implications a town that is built around a factory is a good example of path dependence ideally a factory is located at a distance away from residential areas for various reasons however factories are often built first and the workers homes and amenities are built close by it would be far too costly to move an already established factory even though it would better serve the community if it were located on the outskirts of town according to ian greener a contributor to the encyclopedia britannica studies of how technologies become path dependent suggest that supplier and customer preferences lead to a dominant technology even if it might be inferior to an alternative 1the effects of path dependency on businessesindustries follow path dependency if an initial concept method or innovation is adopted as a standard for example the use of fossil fuels as primary energy sources persists in part because a multitude of tertiary industries is intrinsically tied to fossil fuel use the automotive industry continues to manufacture vehicles with gasoline fueled internal combustion engines although the resource s supply is ultimately finite there is a considerable exploration of alternative fuels and power sources however they lack the research time and infrastructure commitment already established for gasoline fueled transportation and machines despite the rising costs and increased scarcity associated with fossil fuels a long term or renewable successor resource that can meet worldwide demand has yet to be developed at scale path dependency can influence strategies within companies sometimes to the detriment of the business for example most companies have a core product or system that establishes their market presence over time rival products and methods might appear in the market that represent more competitive or lucrative opportunities path dependency can contribute to a reluctance or inability to invest in forward thinking innovations the introduction of digital photography for example presented such a challenge to camera film manufacturers palm the defunct maker of early personal digital assistants found itself in comparable circumstances as the growth of the smartphone market eclipsed its devices although palm s technology saw widespread use as a novel way to access mobile computing the company did not adopt new strategies that would help it maintain relevance as smartphones became the dominant mobile devices according to ian greener a contributor to encyclopedia britannica the qwerty keyboard is a result of path dependence because it is still in use despite being suboptimal in terms of typing speed 1