The Effects of Product Modularity on Competitive Performance: Do Integration Strategies Mediate the Relationship?

Document Type

Article

Publication Date

2007

Publication Source

International Journal of Operations & Production Management

Abstract

Purpose: The 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/approach: Constructs 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.

Findings: Modularity 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 implications: A product modularity strategy enables simultaneous improvements on multiple dimensions of competitive performance.

Originality/value: This 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.

Inclusive pages

1046-1068

ISBN/ISSN

0144-3577

Comments

Permission documentation is on file.

Publisher

Emerald Group Publishing

Volume

27

Issue

10

Peer Reviewed

yes

Link to Full Text

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