Can Small Variations Accumulate into Big Changes?

Using a routine dynamics perspective, the authors address a central question in a practice-driven institutional theory: where does change come from? In particular, the authors focus on the possibility that small variations in routines can accumulate into big changes in institutions. The analysis is limited strictly to endogenous change. The authors use narrative networks to formalize and operationalize key concepts, such as variation and change. The authors reinterpret results from a published simulation model (Pentland, Liu, Kremser, & Haerem, 2020) that examined endogenous change in organizational routines. The simulation suggests that over a wide range of conditions, minor variations can lead to irreversible structural changes in routines. In the absence of exogenous shocks and institutional entrepreneurs, patterns of action that were previously possible can become impossible. The mechanism underlying these changes requires both accumulation and forgetting. Without forgetting, small variations may pile up (like dirty laundry), but they will not result in big changes.