The purpose of this research is to provide a contextual analysis of the introduction of an inter-institutional system (IIS). An exploratory case study was conducted to assess the consequences of implementing a videoconferencing system in three public institutions. Respondents reported radically different experiences with the IIS-videoconference system. Activity theory is used as a framework for analyzing the organizational context at the three settings and exploring consequences of use of the innovation. Using activity theory, I could explain a range of human activity and innovation underlying the inter- organizational work process. This research suggests that deficiencies in actors' activity of the process limit the value of IIS process. This study concludes that IIS design and use are innovation process of context trying to include human activity into IIS system.
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