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

Print publication date: 2005

Print ISBN-13: 9780199263233

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199263233.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 06 March 2021

Modularity and Outsourcing

Modularity and Outsourcing

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

(p.229) 12 Modularity and Outsourcing
The Business of Systems Integration

Mari Sako (Contributor Webpage)

Oxford University Press

This chapter 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. The chapter moves on to understanding strategic drivers for pushing the product architecture towards modularity. It then 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:   modularity, outsourcing, automotive industry, industry dynamics, supply chain management

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