Product modularity and its effects on firm performance: Operationalisation and Measurement

Henrike Engele Elisabeth Boer, Poul H. Kyvsgård Hansen

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Abstract

The literature promises a large range of benefits to firms that adopt product
modularity. However, the term product modularity is ambiguously understood
and its benefits have not been empirically validated through large-scale
studies. By reviewing existing literature, this paper seeks to operationalise
product modularity and firm performance, to support further and more
detailed empirical studies of product modularity’s performance effects. The
review shows that, so far, the operationalisation of product modularity has
been incomplete, and suggests that modularity needs to be operationalised by
assessing the level of 1) standardisation of a product portfolio’s modules
(including functional specificity) and 2) standardisation of module interfaces
(including decomposability). Furthermore, in order for the research
community to move forward, performance effects need to be examined on a
more operational level, by looking at performance indicators for both the
product development and production processes in the firm.
OriginalsprogEngelsk
Titel14th International CINET Conference : Business Development and Co-creation
UdgivelsesstedEnschede
ForlagContinuous Innovation Network
Publikationsdato2013
Udgave14
Sider174-184
ISBN (Elektronisk)978-90-77360-16-3
StatusUdgivet - 2013
BegivenhedInternational CINET conference: Business Development and Co-creation - Nijmegen, Holland
Varighed: 8 sep. 201211 sep. 2013
Konferencens nummer: 14

Konference

KonferenceInternational CINET conference
Nummer14
Land/OmrådeHolland
ByNijmegen
Periode08/09/201211/09/2013

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