The complementarity of internal integration and product modularity: An empirical study of their interaction effect on competitive capabilities

  • Antonio K
  • Richard C
  • Tang E
  • 92

    Readers

    Mendeley users who have this article in their library.
  • 31

    Citations

    Citations of this article.

Abstract

Modular product design and internal integration are commonly adopted by manufacturers to improve operational performance. A number of studies argue that the adoption of product modularity significantly alters organization design, which affects the impact of internal integration on competitive capabilities. This paper thus aims to empirically explore the individual effects as well as interaction effects of product modularity and internal integration on competitive capabilities. The competitive capabilities studied in this paper include product innovativeness, low price, product quality, delivery, flexibility and customer services. After analysing the data from 251 Hong Kong manufacturers through moderated multiple regression analysis, the study found that better internal integration can significantly improve product innovativeness, product quality, delivery, flexibility and customer services, while a high level of product modularity enhances product innovativeness, flexibility and customer services. More importantly, the study shows that internal integration and product modularity can interact to improve product innovativeness and product quality. These results enhance our understanding of the interaction of product design and organizational coordination. © 2009 Elsevier B.V. All rights reserved.

Author-supplied keywords

  • Competitive capabilities
  • Empirical study
  • Hong Kong manufacturing
  • Internal integration
  • Product innovation
  • Product modularity

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • K. W.Lau Antonio

  • C. M.Yam Richard

  • Esther Tang

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free