MODULARITY ON INDUSTRY STRUCTURE: THE CASE OF THE WORLD THE EFFECT OF PRODUCT BICYCLE INDUSTRY

Peter Galvin; André Morkel

doi:10.1080/13662710120034392

Abstract

The adoption of a modular product architecture for the bicycle allowed manufacturers to meet the simultaneous needs of product innovation and cost reduction. Such an approach however, has fragmented the industry into a series of largely independent segments that are primarily linked through the operation of market-based contracts. Active coordination between firms has been replaced by the embedded coordination that comes through modularity. The fragmentation of the industry on the basis of specialized capabilities has led to economic efficiencies and low barriers to entry for most segments of the industry. However, the lack of coordination has limited the industry's capability to make changes in the product architecture beyond the component level.

Keywords

Modularity (biology)Fragmentation (computing)Industrial organizationBusinessModular designProduct (mathematics)ArchitectureCommerceComputer science

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Publication Info

Year: 2001
Type: article
Volume: 8
Issue: 1
Pages: 31-47
Citations: 145
Access: Closed

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APA Style

                            
                                    Peter Galvin, 
                                
                                    André Morkel
                                
                            (2001). 
                            MODULARITY ON INDUSTRY STRUCTURE: THE CASE OF THE WORLD THE EFFECT OF PRODUCT BICYCLE INDUSTRY. 
                            Industry and Innovation
                            , 8
                            (1)
                            , 31-47.
                            https://doi.org/10.1080/13662710120034392

Identifiers

DOI: 10.1080/13662710120034392