Research On Path Dependence Of Strategy Decision In Declining Corporation

Along with developing of science technique and economy, there are more and more competitors in market. The speed of setting up new business is much sooner and easier . But on the other hand , more and more enterprises decline sooner and sooner. How to span declining cycle is a puzzle bothering a number of corporations.According to corporation life cycle theory, the enterprise which is placed in a declining period should adopt harvest or transfer strategy as soon as possible. However the fact is not as simple as respect. Big exiting barrier, sinking cost of investing , transfer of learned technique knowledge and so on ,all of those limit strategy decision of enterprise.Think over the strategy management theory ,it is easy to find many modes of strategic analysis. And there are many methods to help enterprise make strategy decision. But all of them are based on analyzing of environment and market chance. They can't explain why corporation prefer this decision to others.Path dependence theory provides a new point to research the behavior character of strategy decision in declining cycle. Special developing history set up given deciding mode ,and limit corporation strategy searching scope. As a result ,corporation can not discover other chance. In this paper ,I will try to research declining corporation's behavior of strategy decision. By using path dependence analyzing frame, this paper will illuminate why those corporation encounter declining period. And will explain why some of them successfully went through declining period ,while some disappeared.This paper includes six parts. Introduction, give the background ,research objective ,the frame of paper .Researching summarize ,illuminate the latest researching development on strategy decision of declining corporation. Demonstration analysis ,by data analyzing and academic analyzing, sum up the reason on corporation declining ,search path locking mechanism and path exiting mechanism. The last part will summarize research outcome ,give suggestions to further research.