The Intricate Dynamics of Self-reinforcing Processes: Towards a Comprehensive Theory

This paper focuses on the intriguing power of self-reinforcing processes within and among organizations. Recently, such processes have gained increasing attention in the public discourse for explaining puzzling events such as the subprime crisis and other system failures. Apart from some scattered attempts, organizational theory has largely neglected these powerful dynamics which tend to unfold behind the back of the agent and are difficult, if not impossible, to control. In order to advance the study of these dynamics this paper aims at clarifying the nature of self-reinforcing (in contrast to self-sustaining) processes and identifying the major mechanisms driving these processes. For a closer examination of the underlying logic, differentiating the process into distinct temporal phases is suggested. The paper also elaborates on contextual conditions which enhanc the occurrence and unfolding of self-reinforcing processes. Finally a theoretical framework is presented designed to provide a more comprehensi...