The evolutionary dynamics underlying the emergence and development of design as a business function

Despite broad consensus thatdesignescapes easy categorisations few studies tackle the question of how design practices become embedded within the portfolio of firms? activities and how they bear upon decision-making. This is relevant because the domain of influence of design activities potentially cuts across the whole organisational spectrum thereby suggesting significant organisational and strategic consequences. The objective of this paper is to analyse critically the ascent of design activities from being relatively peripheral to becoming a key asset for competitive strategy. It will do so by exploring the interdependencies between processes of knowledge creation and systematisation and the division of labour. The case of the furniture sector in Italy will support our argument by illustrating the extent to which technological developments in the 20th century contributed to the progressive emergence of design as driving force for firms? innovation strategies.

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