Modularity and Outsourcing

Mari Sako

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Product Development and Customization Sustainable Supply Chain Management Outsourcing and Supply Chain Management

Abstract

Abstract Takes the automobile industry as an empirical setting for clarification of the concept of modularity in product architecture. Three arenas of modularity, modularity in design, modularity in production and modularity in use, are discussed as presenting alternative criteria for making boundary choices in complex products. Moves on to understanding strategic drivers for pushing the product architecture towards modularity. Considers the implications of these different paths for industry dynamics (in particular the power balance between customer and supplier companies) and supply chain management.

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References

1990Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms 1967Differentiation and Integration in Complex Organizations 1995The role of product architecture in the manufacturing firm 1985Innovation: Mapping the winds of creative destruction 1996Modularity, flexibility, and knowledge management in product and organization design 1990Loosely Coupled Systems: A Reconceptualization 2000Maximizing shareholder value: a new ideology for corporate governance 2001Knowledge Specialization, Organizational Coupling, and the Boundaries of the Firm: Why Do Firms Know More than They Make?

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