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52  Sustainable Cities and Communities Design Handbook


            nothing represents true or false, but only versions that are more or less
            commonsensible and exhibit their own logic.
               Through interaction the actors have constructed a moving picture of the
            experiential space. This contains not only their orientation toward and relation
            to well-known actors (customers, suppliers, agents, competitors) but also
            moving pictures of less known actors (other firms, other competitors, public
            authorities, and institutions). There are happenings in the world that are not
            directly connected with the actors, but which they may notice and relate
            themselves to their interpretation space and with which they may be con-
            fronted in an interaction (such as the reconstruction of USSR, The Gulf War,
            the situation in the former Yugoslavia, among others).
               The experiential space that one has chosen and formed does not directly
            influence actions and senses. However, when the experiential space exists, it
            works as a possible guide for actions and interpretations. Thus a newly created
            experiential space is a historical document, formed as knowledge. An
            important characteristic is therefore that the experiential space is a social
            construction. It is through interpretation that the actors create a moving picture
            of the experiential space and from this act and interact.
               The discussion so far is the basis for understanding organizational changes
            and activities. Through the discussion of action, knowledge, and interaction,
            and its consequences (i.e., organizing, the organizational paradigm and
            experiential space) we can begin to understand all about what is the “firm” and
            how it changes.

            Constituting of the Organizational Activities and of the “Firm”

            If we relate this to organizing and intersubjectivity, Fig. 3.1 can be presented.
            The idea is to illustrate that the actors’ knowledge and actions should be seen
            in relation to interaction and intersubjectivity in their everyday of life.
               Actions and knowledge are to be understood in relation to the interaction
            processes by the actors. The experiential space is what the actors interpret as
            their situation, market, and surroundings, understood in relation to situations in
            which the actors interact with their product. However, the experiential space is


                                Organizing    Paradigm
                      Knowledge                         Knowledge
                                     Interaction process
                      Action                            Action
                                     Experiential space - Construction


                                     Interpretation space
                FIGURE 3.1 The organizational context in organizational activities and development.
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