An activity system perspective on the sources of competitive advantage: A review and conceptual integration of designing and generative logics

Recent years have seen a proliferation of activity system perspective research, by shedding light on how the choice of activity leads to competitive advantage. Nevertheless, this body of work remains fragmented due to the existence of two implications derived from activity system — designing and generative logics. This study aims to address this gap by systematically reviewing activity system perspective, providing a conceptual framework, and outlining a future research agenda. Our review reveals the focuses of prior works on fit and presents the key components of activity system and their attributes. Further, we propose a holistic understanding of activity system, followed by a conceptual framework of competitive advantage that encompasses the key components of activity system: designed value propositions, designed rules, designed activities, designed fit, generative activities, generative regularities, generative value propositions, and generative fit. Drawing on this framework, we offer a research agenda that highlights the hidden and visible sources of competitive advantage across components, along with research directions towards ecosystem and artificial intelligence. Our contribution lies in the conceptualization of activity system perspective as a designing and generative lens, offering a conceptual framework of competitive advantage and paving the ways for future research.