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An evolutionary model for the dynamics of vertical integration and network-based production

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Author Info
Leonardo Bargigli (Università di Firenze)

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Abstract

The concept of modularity has gained recently a growing attention in the management literature as a key to explain the contemporary trends of industrial dynamics. A stronger exploitation of external «networkbased» economies with respect to internal «bureaucracy-based» economies is one of the major consequences of the diffusion of flexible production systems and of modular architectures for products. To explain this connection, in this paper a model is presented which tries to explain the co-evolution of technology and organization as the outcome of a complex evolutionary process. In particular, through a set of exploratory agent-based simulations we try to show the existence of qualitatively different dynamic processes in coincidence of different phases and specific conditions of product and technology development, as well as the existence of a relationship between this dynamics and other competitive factors, determining a wide set of structurally different dynamical patterns in coincidence of different combinations of factors.

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Paper provided by EconWPA in its series Industrial Organization with number 0509002.

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Length: 45 pages
Date of creation: 05 Sep 2005
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Handle: RePEc:wpa:wuwpio:0509002

Note: Type of Document - pdf; pages: 45
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Related research
Keywords: modularity modular networks

Find related papers by JEL classification:
L - Industrial Organization

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    Other versions:
  2. Brusoni, Stefano & Prencipe, Andrea, 2001. "Unpacking the Black Box of Modularity: Technologies, Products and Organizations," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 179-205, March.
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    Other versions:
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  11. Lombardi, Mauro, 2003. "The evolution of local production systems: the emergence of the "invisible mind" and the evolutionary pressures towards more visible "minds"," Research Policy, Elsevier, vol. 32(8), pages 1443-1462, September. [Downloadable!] (restricted)
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  18. Richard N. Langlois, 2002. "The Vanishing Hand: the Changing Dynamics of Industrial Capitalism," Working papers 2002-21, University of Connecticut, Department of Economics. [Downloadable!]
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  19. Luigi Marengo & Giovanni Dosi & Paolo Legrenzi & Corrado Pasquali, 1999. "The structure of problem-solving knowledge and the structure of organisations," LEM Papers Series 1999/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
    Other versions:
  20. Saviotti, P. P. & Metcalfe, J. S., 1984. "A theoretical approach to the construction of technological output indicators," Research Policy, Elsevier, vol. 13(3), pages 141-151, June. [Downloadable!] (restricted)
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  22. Dosi, Giovanni, 1982. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 11(3), pages 147-162, June. [Downloadable!] (restricted)
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  23. Nightingale, P., 2000. "The product-process-organisation relationship in complex development projects," Research Policy, Elsevier, vol. 29(7-8), pages 913-930, August. [Downloadable!] (restricted)
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