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On the strategic use of product modularity for market entry

Author

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  • Jose Pablo
  • Roberto Fontana
  • Stefano Brusoni

Abstract

We model the conditions under which firms should enter the market with modular products that support multiple standards instead of an integral product that supports a single standard. Product modularity enables firms to broaden their portfolios and increase their chances of investing in the “right” technologies early in a technology cycle. Entry with integral products instead occurs later in the cycle. We test the model’s predictions on a sample of the Local Area Network industry entrants during the 1990s.

Suggested Citation

  • Jose Pablo & Roberto Fontana & Stefano Brusoni, 2023. "On the strategic use of product modularity for market entry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(1), pages 155-180.
    • Handle: RePEc:oup:indcch:v:32:y:2023:i:1:p:155-180.
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    File URL: http://hdl.handle.net/10.1093/icc/dtac053
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    Cited by:

    1. 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.

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