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Modularity On Industry Structure: The Case Of The World The Effect Of Product Bicycle Industry

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  • Peter Galvin
  • Andre Morkel
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    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 Active coordination between firms has been replaced by the embedded coordination that comes through modularity.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.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

    Volume (Year): 8 (2001)
    Issue (Month): 1 ()
    Pages: 31-47

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    Handle: RePEc:taf:indinn:v:8:y:2001:i:1:p:31-47

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    Cited by:
    1. Vincent FRIGANT (GREThA UMR CNRS 5113), 2009. "Is the automotive supply chain compatible with Corporate Social Responsible practices? (In French)," Cahiers du GREThA 2009-08, Groupe de Recherche en Economie Théorique et Appliquée.
    2. Vincent Frigant, 2007. "L'impact de la production modulaire sur l'approfondissement de la Division Internationale des Processus Productifs (DIPP)," Revue d'économie politique, Dalloz, vol. 0(6), pages 937-961.
    3. Vincent Frigant, 2005. "Vanishing hand versus Systems integrators - Une revue de la littérature sur l'impact organisationnel de la modularité," Revue d'Économie Industrielle, Programme National Persée, vol. 109(1), pages 29-52.
    4. Richard Gentry & Heather Elms, 2009. "Firm Partial Modularity and Performance in the Electronic Manufacturing Services Industry," Industry and Innovation, Taylor & Francis Journals, vol. 16(6), pages 575-592.
    5. Vincent FRIGANT (GREThA), 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Cahiers du GREThA 2007-13, Groupe de Recherche en Economie Théorique et Appliquée.
    6. Cabigiosu, Anna & Zirpoli, Francesco & Camuffo, Arnaldo, 2013. "Modularity, interfaces definition and the integration of external sources of innovation in the automotive industry," Research Policy, Elsevier, vol. 42(3), pages 662-675.

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