Managing Experts and Competing through Innovation: An Activity Theoretical Analysis

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Abstract
An activity theoretical analysis is presented of an organization that is operating in a rapidly changing sector and whose competitiveness depends significantly upon the design skills of its engineers. The company designs high-technology make-to-order products. Like other organizations that compete through knowledge and innovation, the prosperity of this company depends upon its organizational learning, that is, upon the effectiveness with which it can mobilize, apply and develop its distinctive knowledge base as circumstances change. In the difficult context that the company faces, the speed with which projects can move from the initial concept phase through design to production has to become especially important. The paper outlines a general strategy that was developed as the company sought to control this process and traces the consequences for design practices. An activity theoretical approach is used to model the changes that were attempted and the outcomes which emerged and to introduce a discussion of possible future options. The approach (i) emphasizes the relevance of a historical perspective on organizational change, (ii) features the changing nature of expertise in contemporary manufacturing and (iii) discusses the potential significance for collective learning of tensions and incoherencies within a work system.