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ICC Advance Access published online on August 3, 2006
Industrial and Corporate Change, doi:10.1093/icc/dtl018
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© The Author 2006. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved

Article

Changing sources of competitive advantage: cognition and path dependence in the Finnish retail industry 1945-1995

Juha-Antti Lamberg 1 * and Henrikki Tikkanen 2

1 Helsinki University of Technology, Institute of Strategy and International Business, Box 5500, 02015-TKK, Espoo, Finland
2 Department of Marketing and Management, Helsinki School of Economics, Box 1210, Helsinki 00101, Finland

* To whom correspondence should be addressed.
Juha-Antti Lamberg, E-mail: juha-antti.lamberg{at}tkk.fi


  Abstract

In this study, we analyze the Finnish retail industry in 1945-1995. Triangulating the major developments in society, technology, and firm-level strategic choices, we identified extensive variation in the sources of competitive advantage over time. We found that the structural and cognitive-cultural dimensions of firms that offered opportunities for success in some specific historical situations turned to be disadvantageous in other situations. We propose a research framework that parcels managerial cognition into the elements of structure, ideology, and systemic and technical properties of the firm. Especially the notion of ideology is novel in the context of path dependence and cognition.


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