Lock in or Locked Out? A Public Sector Contract and a Private Security Firm - Pilot Study

This paper aims to identify path dependency and quot;lock inquot; effects in the contact between a local authority and a private security firm and, if so, to identify impacts on the firm, in particular its ability to win new business.Martin and Sunley (2006, p.395) and Pierson (2000 p.252) provide the theoretical imperative to study path dependency saying that there has been little quot;proper examinationquot; and that quot;clear definitions are rarequot;. Modell Jacobs and Weisel (2007 p.455) suggest path dependency occurs where past choices quot;have an enduring influence and shape emerging change initiativesquot;. Arthur (1989) and Greener (2005) suggest this results in poor decision-making and quot;lock inquot; to inferior technologies. This single case study included seventy hours of informal observations and interviews together with analysis of documents, communications media, organisational structures and networks. It was found that the firm, offering manned guarding and closed circuit television CCTV services, is extensively networked with government agencies, mentors and the security industry. It is suggested these networks give the firm the competitive advantage of timely access to key knowledge and industry expertise. It was found that the firm were quot;locked inquot; to a relationship with the local authority in particular however it is argued here that this may not necessarily constitute path dependency. More importantly it is cautioned that this relationship may not be beneficial for the firm in the short term, since, scarce resources are directed to fulfilling complex compliancy and contractual commitments. As the same time the firm incurs the opportunity costs of not winning new business. Further, it is proposed, that the networks may compound quot;lock inquot; effects. Recommendations are proposed to help win new business. By capitalising on the firm's competitive advantages, marketing communications could be developed that highlight the customer benefits and added value of the firm's expertise, networks and industry knowledge. Future work will use statistical and financial analysis to investigate the specific impacts of path dependency and lock in