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Dancing in shackles: interactive learning of industrial design firms in Beijing

Huasheng Zhu and Pengfei Li

Industry and Innovation, 2019, vol. 26, issue 5, 568-591

Abstract: The paper addresses the structure-agency dilemma of interactive learning in innovation systems, namely the structuration process of how macro-conditions shape micro-actions of firms and the agency process of how firms react to macro-structures. We argue organizational boundaries of firms are an important dimension to tackle the structure-agency dilemma of interactive learning. Specifically, we propose the structuration process can occur through a boundary-stabilizing mechanism while the agency process can happen with a boundary-changing mechanism. We investigate the newly established industrial design firms in China and find that industrial policies, a weak design education system, a fixed-price practice for industrial designs set up clear boundaries between industrial designers and manufacturers, which restrict their interactive learning. To the agency process, we observe a few industrial design firms upgrade by extending their organizational boundaries upstream or downstream in their value chains. Further, we suggest the structuration and agency processes can be context-specific.

Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1080/13662716.2018.1473243

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