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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

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 Active coordination between firms has been replaced by the embedded coordination that comes through modularity.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.

Suggested Citation

  • Peter Galvin & Andre Morkel, 2001. "Modularity On Industry Structure: The Case Of The World The Effect Of Product Bicycle Industry," Industry and Innovation, Taylor & Francis Journals, vol. 8(1), pages 31-47.
  • Handle: RePEc:taf:indinn:v:8:y:2001:i:1:p:31-47
    DOI: 10.1080/13662710120034392
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    Citations

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    Cited by:

    1. 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.
    2. Vincent FRIGANT (GREThA-GRES), 2009. "Is the automotive supply chain compatible with Corporate Social Responsible practices? (In French)," Cahiers du GRES (2002-2009) 2009-04, Groupement de Recherches Economiques et Sociales.
    3. 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. 117(6), pages 937-961.
    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, 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Post-Print hal-00257463, HAL.
    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.
    7. repec:eee:respol:v:47:y:2018:i:1:p:326-341 is not listed on IDEAS

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