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Modularization in the Auto Industry: Interlinked Multiple Hierarchies of Product, Production, and Supplier Systems

Author

Listed:
  • Akira Takeishi

    (Institute of Innovation Research, Hitotsubashi University)

  • Takahiro Fujimoto

    (Faculty of Economics, Universtiy of Tokyo)

Abstract

This paper analyzes the modularization in the world auto industry. The modularization in the industry has involved architectural changes in product, production, and supplier systems with each region (Japan, Europe and the U.S.A.) emphasizing different purposes and aspects. As an attempt to understand such multi-faceted, complex processes coherently, this paper proposes a conceptual framework that sees development / production activities as interlinked, multiple hierarchies of products, processes, and inter-firm boundaries. With this framework, drawing on case studies and questionnaire survey data, the paper examines the on-going processes of modularization in the industry. It is argued that tensions exist among the three hierarchies, and such tensions may lead to further changes in product, production and supplier-system architectures in the auto industry, in a dynamic and path-dependent manner.

Suggested Citation

  • Akira Takeishi & Takahiro Fujimoto, 2001. "Modularization in the Auto Industry: Interlinked Multiple Hierarchies of Product, Production, and Supplier Systems," CIRJE F-Series CIRJE-F-107, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2001cf107
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    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2001/2001cf107.pdf
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    References listed on IDEAS

    as
    1. Carliss Y. Baldwin & Kim B. Clark, 2000. "Design Rules, Volume 1: The Power of Modularity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024667, December.
    2. Langlois, Richard N. & Robertson, Paul L., 1992. "Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries," Research Policy, Elsevier, vol. 21(4), pages 297-313, August.
    Full references (including those not matched with items on IDEAS)

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