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Path-dependent product development and Fiat's takeover of Lancia in 1969: meta-routines for design selection between synergies and brand autonomy

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  • Giuliano Maielli

Abstract

Fiat's acquisition of Lancia in 1969 represented an opportunity for Fiat to strengthen its position in the upper end of the European market. However, Lancia lost its brand identity as a high quality car manufacture, while the Fiat Group remained focused upon the lower end of the market. This article addresses why path-changing opportunities towards more flexible output-mix strategies that emerged at Fiat before and after acquiring Lancia did not unfold. It identifies and analyses the meta-routines for new design selection as the dynamic link between initial conditions of path dependence (development of design hierarchies at Fiat) and lock-in (an output-mix skewed towards utilitarian cars).

Suggested Citation

  • Giuliano Maielli, 2017. "Path-dependent product development and Fiat's takeover of Lancia in 1969: meta-routines for design selection between synergies and brand autonomy," Business History, Taylor & Francis Journals, vol. 59(1), pages 101-120, January.
    • Handle: RePEc:taf:bushst:v:59:y:2017:i:1:p:101-120
    DOI: 10.1080/00076791.2015.1038520
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