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Vanishing hands? On the link between product and organization architecture


Press, K; Geipel, M M (2010). Vanishing hands? On the link between product and organization architecture. Industrial and Corporate Change, 19(5):1493-1514.

Abstract

The present article investigates whether modular product architectures deliver better and more differentiated products, given their production in disintegrated and integrated settings. A theoretic model benchmarks the performance of disintegration and integration for different degrees of product modularity by measuring both product quality and differentiation. In line with conventional wisdom, (nearly) modular products befit disintegration insofar as disintegration increases quality. However, disintegration only leads to greater product differentiation than integration if there is substantial entry and exit. These findings—albeit developed with stylised models of disintegration and integration—provide a possible explanation for empirical results showing a decrease in product variety when modular products were produced by independent manufacturers (disintegration). Moreover, the model results predict that industries with limited entry and exit as well as strong winner-take-all dynamics tend to incur a loss in variety if modular products are produced in a disintegrated setting

Abstract

The present article investigates whether modular product architectures deliver better and more differentiated products, given their production in disintegrated and integrated settings. A theoretic model benchmarks the performance of disintegration and integration for different degrees of product modularity by measuring both product quality and differentiation. In line with conventional wisdom, (nearly) modular products befit disintegration insofar as disintegration increases quality. However, disintegration only leads to greater product differentiation than integration if there is substantial entry and exit. These findings—albeit developed with stylised models of disintegration and integration—provide a possible explanation for empirical results showing a decrease in product variety when modular products were produced by independent manufacturers (disintegration). Moreover, the model results predict that industries with limited entry and exit as well as strong winner-take-all dynamics tend to incur a loss in variety if modular products are produced in a disintegrated setting

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:National licences > 142-005
Dewey Decimal Classification:Unspecified
Scopus Subject Areas:Social Sciences & Humanities > Economics and Econometrics
Language:English
Date:1 October 2010
Deposited On:17 Oct 2018 16:02
Last Modified:31 Jul 2020 02:01
Publisher:Oxford University Press
ISSN:0960-6491
OA Status:Green
Publisher DOI:https://doi.org/10.1093/icc/dtq021
Related URLs:https://www.swissbib.ch/Search/Results?lookfor=nationallicenceoxford101093iccdtq021 (Library Catalogue)

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