Iceberg Storage, a leading hard drive manufacturer, recently filed for bankruptcy. While most of Iceberg's competitors were shifting away from physical data storage devices toward online cloud storage services, Iceberg invested most of its retained earnings in the effort to improve its hard drives. Once the hard-drive market drastically declined, Iceberg Storage was unable to capitalize on the new technology. Which of the following does this scenario best illustrate?
A) causal ambiguity
B) knowledge diffusion
C) social complexity
D) path dependence

Question

Quizplus · Accepted Answer

The scenario best illustrates path dependence. Path dependence is a situation in which the options one faces in the current situation are limited by decisions made in the past.

Iceberg Storage, a Leading Hard Drive Manufacturer, Recently Filed for Bankruptcy