Exploring the Origins of Organizational Paths: Empirical Evidence from Newly Founded Firms

The notion of path dependence in organizational processes has intrigued scholars for several decades. Yet, while extant studies provide rich insights on the factors that cause persistence in organizational paths, research that explores the origins of organizational paths remains scant. Analyzing data collected from 446 firm founders, the author investigates the creation of product—market paths in new firms. The analysis reveals systematic relationships between key pre-entry human capital endowments of founders and the consideration of alternative solutions in path creation, thereby helping us to better explain, and predict, organizational path creation. Implications for the organizational and entrepreneurship literatures are discussed.