The effects of product modularity on competitive performance

Author:

Jacobs Mark,Vickery Shawnee K.,Droge Cornelia

Abstract

PurposeThe purpose of this paper is to examine the effects of product modularity on four aspects of competitive performance: cost, quality, flexibility, and cycle time.Design/methodology/approachConstructs were created from a comprehensive survey of the automotive sector. Regression is used to ascertain the relationship between the constructs of product modularity and performance with three different integration strategies as mediators.FindingsModularity positively and directly influences each aspect of competitive performance for each integration strategy tested. Indirect effects were found for each integration strategy for cost and flexibility; and for manufacturing integration and cycle time.Practical implicationsA product modularity strategy enables simultaneous improvements on multiple dimensions of competitive performance.Originality/valueThis research is the first to empirically validate the effects of product modularity on competitive performance. Furthermore, it provides insight into the exact nature of product modularity's influence on competitive performance.

Publisher

Emerald

Subject

Management of Technology and Innovation,Strategy and Management,General Decision Sciences

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