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Antecedents and outcomes of modular production in the Brazilian automobile industry: a grounded theory approach

Author

Listed:
  • Masaaki Kotabe

    (Temple University, The Institute of Global Management Studies, Philadelphia, USA)

  • Ronaldo Parente

    (Rutgers University, School of Business Camden)

  • Janet Y Murray

    (College of Business Administration, University of Missouri-St Louis, St Louis, USA)

Abstract

Our paper focuses on how foreign automobile manufacturers in Brazil have implemented and benefited from strategic modularization. Based on our case studies and in-depth interviews, we developed a theoretical framework to examine the antecedents and outcomes of strategic modularization. Our theoretical framework suggests that strategic modularization may help improve a firm's positional advantage by reducing the cost of managing tacit knowledge. In addition, the adoption of strategic modularization influences the nature of relationships with major suppliers, further blurring the boundaries of the firm. Journal of International Business Studies (2007) 38, 84–106. doi:10.1057/palgrave.jibs.8400244

Suggested Citation

  • Masaaki Kotabe & Ronaldo Parente & Janet Y Murray, 2007. "Antecedents and outcomes of modular production in the Brazilian automobile industry: a grounded theory approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 84-106, January.
  • Handle: RePEc:pal:jintbs:v:38:y:2007:i:1:p:84-106
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    Cited by:

    1. Albertoni, Filippo & Elia, Stefano & Massini, Silvia & Piscitello, Lucia, 2017. "The reshoring of business services: Reaction to failure or persistent strategy?," Journal of World Business, Elsevier, vol. 52(3), pages 417-430.
    2. Buckley, Peter J. & Cross, Adam & De Mattos, Claudio, 2015. "The principle of congruity in the analysis of international business cooperation," International Business Review, Elsevier, vol. 24(6), pages 1048-1060.
    3. Luo, Yadong & Sun, Jinyun & Wang, Stephanie Lu, 2011. "Comparative strategic management: An emergent field in international management," Journal of International Management, Elsevier, vol. 17(3), pages 190-200, September.
    4. Hätönen, Jussi, 2009. "Making the locational choice: A case approach to the development of a theory of offshore outsourcing and internationalization," Journal of International Management, Elsevier, vol. 15(1), pages 61-76, March.
    5. Lassar, Walfried & Haar, Jerry & Montalvo, Raúl & Hulser, Leslie, 2010. "Determinants Of Strategic Risk Management In Emerging Markets Supply Chains: The Case Of Mexico," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 15(28), pages 125-140.
    6. Ram Mudambi, 2013. "Location, control and firm innovation: the case of the mobile handset industry," Chapters,in: Handbook of Industry Studies and Economic Geography, chapter 9, pages 230-252 Edward Elgar Publishing.
    7. Muethel, Miriam & Hoegl, Martin, 2012. "The influence of social institutions on managers’ concept of trust: Implications for trust-building in Sino-German relationships," Journal of World Business, Elsevier, vol. 47(3), pages 420-434.
    8. Baier, Elisabeth & Rammer, Christian & Schubert, Torben, 2015. "The Impact of Captive Innovation Offshoring on the Effectiveness of Organizational Adaptation," Journal of International Management, Elsevier, vol. 21(2), pages 150-165.
    9. Moghaddam, Kaveh & Sethi, Deepak & Weber, Thomas & Wu, Jun, 2014. "The Smirk of Emerging Market Firms: A Modification of the Dunning's Typology of Internationalization Motivations," Journal of International Management, Elsevier, vol. 20(3), pages 359-374.
    10. repec:bbz:fcpbbr:v:11:y:2014:i:4:p:53-83 is not listed on IDEAS
    11. Stefano Elia & Rajneesh Narula & Silvia Massini, 2015. "Disentangling the Role of Modularity and Bandwidth in Entry Mode Choice: The Case of Business Services Offshoring," John H Dunning Centre for International Business Discussion Papers jhd-dp2015-06, Henley Business School, Reading University.
    12. Parente, Ronaldo C. & Baack, Daniel W. & Hahn, Eugene D., 2011. "The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach," Journal of International Management, Elsevier, vol. 17(4), pages 278-290.
    13. Han, Chaodong & Porterfield, Tobin & Li, Xiaolin, 2012. "Impact of industry competition on contract manufacturing: An empirical study of U.S. manufacturers," International Journal of Production Economics, Elsevier, vol. 138(1), pages 159-169.
    14. Javalgi, Rajshekhar (Raj) G. & Dixit, Ashutosh & Scherer, Robert F., 2009. "Outsourcing to emerging markets: Theoretical perspectives and policy implications," Journal of International Management, Elsevier, vol. 15(2), pages 156-168, June.
    15. Mauri, Alfredo J. & Neiva de Figueiredo, João, 2012. "Strategic Patterns of Internationalization and Performance Variability: Effects of US-Based MNC Cross-Border Dispersion, Integration, and Outsourcing," Journal of International Management, Elsevier, vol. 18(1), pages 38-51.
    16. Baier , Elisabeth & Rammer , Christian & Schubert , Torben, 2013. "The Impact of Innovation Off-shoring on Organizational Adaptability," Papers in Innovation Studies 2013/44, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    17. Manuel Portugal Ferreira & Nuno Rosa Reis & Fernando Ribeiro Serra & Benny Kramer Costa, 2013. "Understanding the footprint of the RBV in International Business studies: The last twenty years of research," Working Papers 96, globADVANTAGE, Polytechnic Institute of Leiria.
    18. Henning Skirde & Wolfgang Kersten & Meike Schröder, 2016. "Measuring the Cost Effects of Modular Product Architectures — A Conceptual Approach," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 1-23, August.
    19. Manuel Portugal Ferreira & Fernando A. Ribeiro Serra & Benny Kramer Costa, 2011. "The RBV in International Business Studies: A bibliometric study of Barney?s (1991) contribution to the field," Working Papers 82, globADVANTAGE, Polytechnic Institute of Leiria.

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