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Market performance implications of modularization: Evidence from global auto firms operating in China

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  • Seyoum, Belay
  • Lian, Yunshan

Abstract

Auto firms play an increasingly important role in national economies. However, their internationalization strategies, especially the trend towards modularization has been underexplored in the international business literature. Drawing on the resource based theory, we develop hypotheses on the link between modularization and market performance. Analyzing a sample of 262 auto parts suppliers in China, the study shows the positive influence of modularization on firm performance and the moderating role of knowledge sharing tools and physical proximity in this relationship. In addition, these relationships are channeled by firms’ strategic actions to maintain superior business performance against competitors (firm positional advantage).

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  • Seyoum, Belay & Lian, Yunshan, 2018. "Market performance implications of modularization: Evidence from global auto firms operating in China," International Business Review, Elsevier, vol. 27(4), pages 852-866.
    • Handle: RePEc:eee:iburev:v:27:y:2018:i:4:p:852-866
    DOI: 10.1016/j.ibusrev.2018.01.008
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    4. Qamar, A. & Gardner, E.C. & Buckley, T. & Zhao, K., 2021. "Home-owned versus foreign-owned firms in the UK automotive industry: Exploring the microfoundations of ambidextrous production and supply chain positioning," International Business Review, Elsevier, vol. 30(1).

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