The Effect of Product Modularity on Supplier Integration

This chapter seeks to identify the set of conditions under which the mirroring hypothesis holds, proposing that modular product architecture leads to organizational modularity (i.e., supplier disintegration). The contradictory results on the mirroring hypothesis in the extant literature call for a more holistic analysis of the issue. To this end, this chapter develops a multi-objective mathematical model, allowing for the simultaneous examination of potentially influential factors, including those claimed to be neglected by the mirroring hypothesis. The findings reveal that modular product architecture does not necessarily lead to supplier disintegration, but that its effect is contingent on a firm's priorities.

Does supplier involvement enhance financial performance? The encapsulation effects of product modularity and smartness

Purpose This study aims to explore the conditional relationships between supplier involvement and financial performance. From a problem-solving perspective, this study takes the focal firm as a problem-solving system. It is postulated that supplier involvement enhances financial performance by helping solve complex problems of new product development. Furthermore, product modularity and smartness are considered contingent factors to clarify the boundary conditions. Design/methodology/approach The ordinary least squares regression was conducted to test the hypotheses based on survey data from 136 high-tech firms in China. Findings Supplier involvement is positively related to financial performance. Product modularity weakens the impact of supplier involvement on financial performance. Furthermore, product smartness strengthens the negative influence of product modularity on the relationship between supplier involvement and financial performance. Originality/value This study combines supplier involvement with product attributes. It takes a problem-solving perspective to rethink suppliers’ roles in new product development as problem-solvers rather than resource holders. Furthermore, this study advances the encapsulation effects of product modularity and smartness to influence the supplier involvement–financial performance link.

Exploring Product Modularity in Residential Building Areas

This study explores how the logic of product modularity could be useful for the design of complete residential building areas. Previous research has noted that product modularity is usually only applicable if a ‘full modularization’ approach is pursued (i.e., an approach with completely defined modules). This is challenging in Engineer To Order production strategies. Therefore, an approach towards partial product modularity is sought instead. In this approach, the modules are lesser defined to allow flexibility following, e.g., architectural design freedom, as well as per project-specific requirements posed in house-building projects. This study identifies nine (9) ‘modules’ which are denominated as functional spaces. By explaining how unique project requirements affect functional spaces, some integral elements of house-building are detailed. By evaluating the functional spaces in regards to the level of predefinition, as well as the level of relationship, their level of modularity is explored. The usefulness of partial modularity for house-building is suggested to be for coordination of design work and support tools that aides design work. This study suggests that partial modularity can be a feasible approach towards modularity without the need for countermeasures in terms of increasing product predefinition.

Mapping the types of modularity in open-source hardware

The importance of intangible code modularity in open-source software, as well as of tangible product modularity in proprietary hardware, is widely acknowledged. Nevertheless, modularity in open-source hardware (OSH) remains under-researched. This article first describes qualitatively different types of modularity based on two OSH case studies and then quantifies each type of modularity, following a unified network-based approach. The results are discussed and compared within each case to test the ‘mirroring hypothesis’, and between cases to evaluate the impact of physical against intangible modularity types. The ultimate goal is to prompt a discussion into a wide but under-explored subset in OSH.

Leveraging Innovation Resources for Modular Products under Open Innovation Scenarios Using Fuzzy Distance Method

In an open innovation environment, it is meaningful for manufacturing enterprises targeting global markets to integrate qualified innovation resources. In this paper, the linkage between product modularity and open innovation is first discussed, revealing a role that modular product architecture plays in linking enterprises’ innovation requirements and innovation resources as external innovation inputs. Next, indices for evaluating external innovation resources are developed. An evaluation method based on fuzzy distance is then proposed, which is intended to select optimal resources for the core modules of modular product architecture. A modular product of Haier Group is used as a typical case to verify the proposed method. Consistent evaluation results of innovation resources are achieved for different decision-making attitudes. Another finding regarding the case enterprise is that the resource management mechanisms it employs lead to a win-win cooperative relationship with its partners.