Technological and organizational innovation: A dilemma of fundamental change and participation

Abstract

This article proposes sociotechnical system theory as a framework for analysing the relationship between technological and organizational innovation and as a tool for managing change as a process of organizational learning. The article focuses on the barriers to change and the way in which the dilemma between expert design and participatory development is approached. The technological and organizational innovation in an automated clearing house for payment transactions has been used as an example. The longitudinal case research focuses on the dynamics of change and illustrates the importance of learning processes during the innovation to realize flexibility and innovative capacity within the organization. The article concludes that sociotechnical system theory provides a basis of knowledge for redesigning organizations as well as developing organizations by learning processes. It indicates six barriers to technological and organizational innovation and offers a perspective on how to integrate design strategies with a participative learning strategy for fundamental change.