Modularity, strategic flexibility, and firm performance: a study of the home appliance industry
Article first published online: 19 SEP 2002
Copyright © 2002 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 23, Issue 12, pages 1123–1140, December 2002
How to Cite
Worren, N., Moore, K. and Cardona, P. (2002), Modularity, strategic flexibility, and firm performance: a study of the home appliance industry. Strat. Mgmt. J., 23: 1123–1140. doi: 10.1002/smj.276
- Issue published online: 4 NOV 2002
- Article first published online: 19 SEP 2002
- Manuscript Accepted: 7 JUN 2002
- Manuscript Received: 14 SEP 1999
- strategic flexibility;
- global strategies
Recent theorizing has proposed that modular product and process architectures are key enablers of strategic flexibility. We formulated an integrative conceptual model encompassing antecedents, contributing factors, and outcomes of modularity. We then tested this model on data from managers in U.S. and U.K. home appliance companies using structural equations modeling. The results indicate a positive relationship between modular product architectures and performance, with product model variety as a mediating variable. The results also highlight linkages between perceptions of market context and the use of modular products architectures, and between complementary organizational capabilities and firm performance. Copyright © 2002 John Wiley & Sons, Ltd.