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Modular Production Networks in Electronics: the Nexus between Management and Economics Research

Author

Listed:
  • Byron Gangnes

    () (School of Economics and Social Sciences, Singapore Management University)

  • Ari Van Assche

    () (University of California at Davis)

Abstract

In the last two decades, the electronics industry has evolved from a vertically integrated industry to a vertically segmented one. This transformation has often been attributed to the modularization of electronic products. In this paper, we argue that the degree of modularity is an active choice variable for a firm. As a result, it is necessary to focus on the underlying factors that drive both modularity and the organization of production. This provides insights into the transformation taking place in global electronics production, with vertical fragmentation, horizontal consolidation, and the growth of Asian electronics production.

Suggested Citation

  • Byron Gangnes & Ari Van Assche, 2004. "Modular Production Networks in Electronics: the Nexus between Management and Economics Research," Working Papers 21-2004, Singapore Management University, School of Economics.
    • Handle: RePEc:siu:wpaper:21-2004
    as

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    References listed on IDEAS

    as
    1. Langlois, Richard N., 2002. "Modularity in technology and organization," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 19-37, September.
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    6. Joseph E. Stiglitz & Shahid Yusuf, 2001. "Rethinking the East Asian Miracle," World Bank Publications, The World Bank, number 13969.
    7. Dieter Ernst, 2003. "How Sustainable are Benefits from Global Production Networks? Malaysia's Upgrading Prospects in the Electronics Industry," Economics Study Area Working Papers 57, East-West Center, Economics Study Area.
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    9. David L. Hummels & Dana Rapoport & Kei-Mu Yi, 1998. "Vertical specialization and the changing nature of world trade," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 79-99.
    10. Dieter Ernst, 2002. "Global Production Networks in East Asia's Electronics Industry and Upgrading Perspectives in Malaysia," Economics Study Area Working Papers wp44, East-West Center, Economics Study Area, revised Oct 2003.
    11. Boy Luthje, 2002. "Electronics Contract Manufacturing: Global Production and the International Division of Labor in the Age of the Internet," Industry and Innovation, Taylor & Francis Journals, vol. 9(3), pages 227-247.
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    14. repec:hrv:faseco:4784029 is not listed on IDEAS
    15. Shahid Yusuf, 2003. "Innovative East Asia : The Future of Growth," World Bank Publications, The World Bank, number 15158.
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    Citations

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    Cited by:

    1. 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.
    2. Vincent Frigant, 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Post-Print hal-00257463, HAL.

    More about this item

    Keywords

    modularity; electronics; outsourcing; contract manufacturing; East Asia;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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