Activity theory for understanding and managing system innovations

This study aims to show how activity theory in the socio-technical systems paradigm can assist in understanding and managing system innovation. We conceptualize socio-technical systems to address societal needs as activity systems and system innovations as transformations of such systems. Transformations result from resolving contradictions that develop due to technical and social change within and between the activities carried out by various agencies to fulfill societal needs. Along this line, the explanation of system innovations focuses on identifying emerging contradictions, resolution initiatives, and their outcomes, whereas the governance of system innovations can be carried out by interactively developing policies through successive interventions to resolve contradictions. We demonstrate the employment of activity theory to understand the transformation of the recorded music socio-technical system towards streaming, as well as to facilitate the management of the transition of the olive oil-producing sector at the regional level towards a circular economy through the adoption of innovative waste-processing technology.