Do modular products lead to modular organizations?

Do modular products lead to modular organizations? The tacit assumption that increased product modularity is associated with advantageous increases in organizational modularity underlies much of the literature on modularity. Previous empirical investigations of this assumption, few in number, have faced numerous confounding factors and generated conflicting results. I build a causal model for the relationship between product and organizational modularity, which I test using a distinctive empirical setting that controls for confounding factors present in previous studies. I find support for only part of the assumed relationship, showing that modularity is a more multifaceted concept than previously recognized. In particular, increased product modularity enhances reconfigurability of organizations more quickly than it allows firms to move activities out of hierarchy. The paper contributes to the emerging stream of research that focuses on the previously underappreciated costs of designing and maintaining a modular organization. Copyright © 2006 John Wiley & Sons, Ltd. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Do modular products lead to modular organizations?

Strategic Management Journal, Volume 27 (6) – Jun 1, 2006

Loading next page...
 
/lp/wiley/do-modular-products-lead-to-modular-organizations-d8atiAQ9Re
Publisher
Wiley
Copyright
Copyright © 2006 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/smj.528
Publisher site
See Article on Publisher Site

Abstract

The tacit assumption that increased product modularity is associated with advantageous increases in organizational modularity underlies much of the literature on modularity. Previous empirical investigations of this assumption, few in number, have faced numerous confounding factors and generated conflicting results. I build a causal model for the relationship between product and organizational modularity, which I test using a distinctive empirical setting that controls for confounding factors present in previous studies. I find support for only part of the assumed relationship, showing that modularity is a more multifaceted concept than previously recognized. In particular, increased product modularity enhances reconfigurability of organizations more quickly than it allows firms to move activities out of hierarchy. The paper contributes to the emerging stream of research that focuses on the previously underappreciated costs of designing and maintaining a modular organization. Copyright © 2006 John Wiley & Sons, Ltd.

Journal

Strategic Management JournalWiley

Published: Jun 1, 2006

References

  • Unpacking the black box of modularity: technologies, products and organizations
    Brusoni, Brusoni; Prencipe, Prencipe
  • Technological and organizational designs for realizing economies of substitution
    Garud, Garud; Kumaraswamy, Kumaraswamy
  • Toward a knowledge‐based theory of the firm
    Grant, Grant
  • Measuring competence: exploring firm effects in pharmaceutical research
    Henderson, Henderson; Cockburn, Cockburn
  • How much you know versus how well I know you: selecting a supplier for a technically innovative component
    Hoetker, Hoetker
  • On the criteria for decomposing systems into modules
    Parnas, Parnas
  • Structuring cooperative relationships between organizations
    Ring, Ring; Van de Ven, Van de Ven
  • Strategic flexibility in product competition
    Sanchez, Sanchez
  • The role of product architecture in the manufacturing firm
    Ulrich, Ulrich

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off