A Conceptual KTRPS Extension to Five Forces Analysis: Commitment Accumulation and Correction Capacity
Year: 2026
Type: preprint
Abstract: This paper develops a conceptual extension of Knowledge Thermodynamics Recursive Planning Science (KTRPS) to industry structure as analyzed through Porter’s Five Forces. It investigates how accumulated strategic commitments may alter the conditions under which later decisions are made and constrain an organization’s capacity to reverse or correct those commitments. The proposed mechanism begins with a recurring strategic problem: a profitable organization responds to successive competitive pressures by embedding commitments that shape its future decision space. Over time, a change in supplier terms, technology, market conditions, or another external requirement may demand a correction that the organization can no longer complete—even while conventional performance indicators remain strong. The paper advances a falsifiable comparative claim: a correction requirement estimated ex ante from a record of prior commitments may predict subsequent correction difficulty better than conventional concentration, switching-cost, distress, and inertia measures. Part I develops the firm-level mechanism. It defines the focal unit and distinguishes counterparty switching costs from the focal organization’s own reversal costs through a mandatory two-entity test. It presents five conditional firm-level propositions, a commitment register, a correction-capacity assessment instrument, threshold-proximity estimation, identification and validity safeguards, and a data-viability score. A five-case proof-of-concept application—Nokia, BlackBerry, Blockbuster, Nike, and Commodore—demonstrates the coding procedure, the treatment of incomplete and ambiguous public evidence, and the limits of what external records can establish about internal correction capacity. Part II examines the conditions under which firm-level commitment dynamics may aggregate into meso-level and industry-level patterns. It develops a transitional test involving shared external dependencies and internal correction capacities, and identifies public-data environments in which relevant dependency relationships may be examined without privileged organizational access. The research agenda distinguishes two tracks: diagnostic-utility and action-research studies examining whether the proposed instruments can be coded reliably and whether their use changes organizational decisions; and comparative predictive studies testing the paper’s central propositions. Status and limitations: This is a conceptual working paper. It reports no original empirical test and no empirical comparison demonstrating superiority over Porter’s Five Forces. The five historical cases demonstrate the application of the proposed coding procedure; they are not tests of the propositions or evidence of inter-rater reliability. The case codings were performed by a single analyst who knew the outcomes. Empirical comparison and independent reliability assessment remain subjects for future research. Keywords: Knowledge Thermodynamics Recursive Planning Science (KTRPS); Porter’s Five Forces; strategic commitment; commitment accumulation; correction capacity; organizational reversibility; path dependence; threshold proximity; strategic lock-in; industry structure; operationalization; conceptual framework; comparative historical cases; action research; dependency networks
Author: Katz, E.
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225343774