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Benefiting from modularity within and across firm boundaries

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  • Richard Tee

Abstract

While existing research has shown the impact modularity can have on organizations, how firms themselves manage the interdependencies underlying modular designs is less well understood. This study addresses this, first by analyzing the role of architectural and systemic knowledge in changing product and organizational modularity. It then focuses on the extent to which development of modules takes place within or across firm boundaries and considers the drivers and outcomes of such decisions. In so doing, the paper connects research on modularity to the classic literature on product lifecycles, and extends this to current work on systems integration and platform ecosystems. Overall, the paper emphasizes the importance of intra and inter-firm modularity in terms of product and organizational mirroring, opportunities that emerge along the product life cycle, and how these can benefit systems integrators or modular firms.

Suggested Citation

  • Richard Tee, 2019. "Benefiting from modularity within and across firm boundaries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(5), pages 1011-1028.
    • Handle: RePEc:oup:indcch:v:28:y:2019:i:5:p:1011-1028.
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    File URL: http://hdl.handle.net/10.1093/icc/dtz007
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    Citations

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    Cited by:

    1. Burton, Nicholas & Galvin, Peter, 2022. "Modularity, value and exceptions to the mirroring hypothesis," Journal of Business Research, Elsevier, vol. 151(C), pages 635-650.
    2. Stefano Brusoni & Joachim Henkel & Michael G Jacobides & Samina Karim & Alan Mac & Phanish Puranam & Melissa Schilling, 2023. "The power of modularity today: 20 years of “Design Rules”," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(1), pages 1-10.
    3. Jiang Wei & Yang Yang & Sali Li, 2021. "Mirror or no mirror? Architectural design of cross-border integration of Chinese multinational enterprises," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1399-1430, December.
    4. Hasan A. M. Hamdan & Luitzen de Boer & Daniela Baer, 2021. "When Green Procurement Meets Complexity: The Case of Sustainable Neighborhood Projects," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    5. Uzunca, Bilgehan & Sharapov, Dmitry & Tee, Richard, 2022. "Governance rigidity, industry evolution, and value capture in platform ecosystems," Research Policy, Elsevier, vol. 51(7).
    6. Silva, Lucas Emmanuel Nascimento & Gomes, Leonardo Augusto de Vasconcelos & Faria, Aline Mariane de & Borini, Felipe Mendes, 2024. "Innovation processes in ecosystem settings: An integrative framework and future directions," Technovation, Elsevier, vol. 132(C).
    7. Nicholas Burton & Peter Galvin, 2022. "The effect of technology and regulation on the co-evolution of product and industry architecture," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(4), pages 1056-1085.
    8. Meissner, Dirk & Burton, Nicholas & Galvin, Peter & Sarpong, David & Bach, Norbert, 2021. "Understanding cross border innovation activities: The linkages between innovation modes, product architecture and firm boundaries," Journal of Business Research, Elsevier, vol. 128(C), pages 762-769.

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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