IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitmx/v13y2016i04ns0219877016500176.html
   My bibliography  Save this article

Measuring the Cost Effects of Modular Product Architectures — A Conceptual Approach

Author

Listed:
  • Henning Skirde

    (Institute of Business Logistics and General Management, Hamburg University of Technology, Am Schwarzenberg-Campus 4, 21073 Hamburg, Germany)

  • Wolfgang Kersten

    (Institute of Business Logistics and General Management, Hamburg University of Technology, Am Schwarzenberg-Campus 4, 21073 Hamburg, Germany)

  • Meike Schröder

    (Institute of Business Logistics and General Management, Hamburg University of Technology, Am Schwarzenberg-Campus 4, 21073 Hamburg, Germany)

Abstract

Modular product architectures offer a solution for the trade-off between offering the market a wide variety of products and improving a company’s internal cost situation. However, individual cost effects that determine the extent to which modularity should be applied to product architecture are widely unknown in industry. In this paper, we develop a conceptual approach to provide suggestions for improving an examined modular product architecture from a cost perspective. Our work makes an important contribution: The conceptual approach accentuates which steps are necessary in order to recommend whether the product architecture’s current degree of modularity should be enhanced or diminished.

Suggested Citation

  • Henning Skirde & Wolfgang Kersten & Meike Schröder, 2016. "Measuring the Cost Effects of Modular Product Architectures — A Conceptual Approach," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 1-23, August.
  • Handle: RePEc:wsi:ijitmx:v:13:y:2016:i:04:n:s0219877016500176
    DOI: 10.1142/S0219877016500176
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219877016500176
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S0219877016500176?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sendil K. Ethiraj & Daniel Levinthal, 2004. "Modularity and Innovation in Complex Systems," Management Science, INFORMS, vol. 50(2), pages 159-173, February.
    2. Christoph H. Loch & Christian Terwiesch & Stefan Thomke, 2001. "Parallel and Sequential Testing of Design Alternatives," Management Science, INFORMS, vol. 47(5), pages 663-678, May.
    3. Jo Thori Lind & Halvor Mehlum, 2010. "With or Without U? The Appropriate Test for a U‐Shaped Relationship," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 109-118, February.
    4. Pimmler, Thomas U. (Thomas Udo) & Eppinger, Steven D., 1994. "Integration analysis of product decompositions," Working papers 3690-94., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    5. Ahmadi, Reza & Roemer, Thomas A. & Wang, Robert H., 2001. "Structuring product development processes," European Journal of Operational Research, Elsevier, vol. 130(3), pages 539-558, May.
    6. Masaaki Kotabe & Ronaldo Parente & Janet Y Murray, 2007. "Antecedents and outcomes of modular production in the Brazilian automobile industry: a grounded theory approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 84-106, January.
    7. Thyssen, Jesper & Israelsen, Poul & Jorgensen, Brian, 2006. "Activity-based costing as a method for assessing the economics of modularization--A case study and beyond," International Journal of Production Economics, Elsevier, vol. 103(1), pages 252-270, September.
    8. Fixson, Sebastian K. & Park, Jin-Kyu, 2008. "The power of integrality: Linkages between product architecture, innovation, and industry structure," Research Policy, Elsevier, vol. 37(8), pages 1296-1316, September.
    9. Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brylowski, Martin & Ludwig, Maximilian & Kersten, Wolfgang & Schultze, Wolfgang, 2020. "Product modularization in integrated supply chains: A product life-cycle phase specific concept for effect allocation," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Data Science and Innovation in Supply Chain Management: How Data Transforms the Value Chain. Proceedings of the Hamburg International Conference of Lo, volume 29, pages 25-76, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    2. Skirde, Henning & Steinert, Robert, 2018. "About the future role of software in the product," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), The Road to a Digitalized Supply Chain Management: Smart and Digital Solutions for Supply Chain Management. Proceedings of the Hamburg International C, volume 25, pages 143-155, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Battke, Benedikt & Schmidt, Tobias S. & Stollenwerk, Stephan & Hoffmann, Volker H., 2016. "Internal or external spillovers—Which kind of knowledge is more likely to flow within or across technologies," Research Policy, Elsevier, vol. 45(1), pages 27-41.
    2. Kwak, Kiho & Kim, Namil, 2022. "Industrial Leadership Changes without Technological Discontinuity: Modularization, Institution-Led Market Discontinuity, and Market Development Strategy," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    3. Cabigiosu, Anna & Zirpoli, Francesco & Camuffo, Arnaldo, 2013. "Modularity, interfaces definition and the integration of external sources of innovation in the automotive industry," Research Policy, Elsevier, vol. 42(3), pages 662-675.
    4. Babak Heydari & Mohsen Mosleh & Kia Dalili, 2016. "From Modular to Distributed Open Architectures: A Unified Decision Framework," Systems Engineering, John Wiley & Sons, vol. 19(3), pages 252-266, May.
    5. Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow & Chi-Hyon Lee & Manuela N. Hoehn-Weiss & Samina Karim, 2016. "Grouping interdependent tasks: Using spectral graph partitioning to study complex systems," Strategic Management Journal, Wiley Blackwell, vol. 37(1), pages 177-191, January.
    6. Andreas Reinstaller, 2011. "The Modularity of Technology and Organisations. Implications for the Theory of the Firm," WIFO Working Papers 398, WIFO.
    7. Anna Cabigiosu & Arnaldo Camuffo, 2012. "Beyond the “Mirroring” Hypothesis: Product Modularity and Interorganizational Relations in the Air Conditioning Industry," Organization Science, INFORMS, vol. 23(3), pages 686-703, June.
    8. Gil, Nuno & Tether, Bruce S., 2011. "Project risk management and design flexibility: Analysing a case and conditions of complementarity," Research Policy, Elsevier, vol. 40(3), pages 415-428, April.
    9. 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.
    10. Bernardo A. Huberman & Dennis M. Wilkinson, 2010. "Fluctuating Efforts and Interdependencies in Collaborative Work," Group Decision and Negotiation, Springer, vol. 19(2), pages 169-191, March.
    11. Schmickl, Christina & Kieser, Alfred, 2008. "How much do specialists have to learn from each other when they jointly develop radical product innovations?," Research Policy, Elsevier, vol. 37(3), pages 473-491, April.
    12. Andreas Reinstaller, 2012. "Modularity and its Implications for the Theory of the Firm," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 32, Edward Elgar Publishing.
    13. Arman Avadikyan & Gilles Lambert & Christophe Lerch, 2016. "A Multi-Level Perspective on Ambidexterity: The Case of a Synchrotron Research Facility," Working Papers of BETA 2016-44, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    14. Nuno Gil & Marcela Miozzo, 2007. "Innovation in Private Infrastructure Development Effects of the Selection Environment and Modularity," DRUID Working Papers 07-23, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    15. Manuel E. Sosa & Steven D. Eppinger & Craig M. Rowles, 2004. "The Misalignment of Product Architecture and Organizational Structure in Complex Product Development," Management Science, INFORMS, vol. 50(12), pages 1674-1689, December.
    16. Tian Heong Chan & Shi-Ying Lim, 2023. "The Emergence of Novel Product Uses: An Investigation of Exaptations in IKEA Hacks," Management Science, INFORMS, vol. 69(5), pages 2870-2892, May.
    17. Sheth, Ananya & Sinfield, Joseph V., 2022. "An analytical framework to compare innovation strategies and identify simple rules," Technovation, Elsevier, vol. 115(C).
    18. Bent Flyvbjerg & Alexander Budzier & Jong Seok Lee & Mark Keil & Daniel Lunn & Dirk W. Bester, 2022. "The Empirical Reality of IT Project Cost Overruns: Discovering A Power-Law Distribution," Papers 2210.01573, arXiv.org.
    19. Glenn Hoetker & Anand Swaminathan & Will Mitchell, 2007. "Modularity and the Impact of Buyer-Supplier Relationships on the Survival of Suppliers," Management Science, INFORMS, vol. 53(2), pages 178-191, February.
    20. Alan MacCormack & John Rusnak & Carliss Y. Baldwin, 2006. "Exploring the Structure of Complex Software Designs: An Empirical Study of Open Source and Proprietary Code," Management Science, INFORMS, vol. 52(7), pages 1015-1030, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijitmx:v:13:y:2016:i:04:n:s0219877016500176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitm/ijitm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.