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The Business of Systems Integration$
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Andrea Prencipe, Andrew Davies, and Michael Hobday

Print publication date: 2003

Print ISBN-13: 9780199263226

Published to Oxford Scholarship Online: January 2005

DOI: 10.1093/0199263221.001.0001

Modularity and Outsourcing

The Nature of Co-evolution of Product Architecture and Organization Architecture in the Global Automotive Industry

Chapter:
(p.229) 12 Modularity and Outsourcing
Source:
The Business of Systems Integration
Author(s):

Mari Sako (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0199263221.003.0012

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.

Keywords:   automotive industry, industry dynamics, modularity, outsourcing, supply chain management, systems integration

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