Chapter

Modularity and Outsourcing

Mari Sako

in The Business of Systems Integration

Published in print November 2003 | ISBN: 9780199263226
Published online January 2005 | e-ISBN: 9780191718830 | DOI: http://dx.doi.org/10.1093/0199263221.003.0012
Modularity and Outsourcing

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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

Chapter.  9728 words.  Illustrated.

Subjects: Economic Systems

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