Title: Contrary evidence: product modularity and supplier integration

Authors: Metehan Feridun Sorkun

Addresses: Faculty of Business, Department of Business Administration, İzmir University of Economics, Sakarya Caddesi, No. 156, Balçova, 35330 İzmir, Turkey

Abstract: This research investigates whether there is any relationship between the levels of product modularity (PM) and organisational modularity (OM). It additionally explores the implications of this relationship on inventory performance. The proposition, mirroring hypothesis, establishes the positive relationship between PM and OM. However, many studies oppose to the mirroring hypothesis by revealing various contingent factors. The one, even if not being uncovered yet, is an operational factor. High inventory performance requires the pair 'modular product - supplier integration', indicating a negative relationship between PM and OM at across-firm level. This research sheds light on this controversy based on the data collected by Turkish manufacturing firms. The results show the negative correlation between PM and OM for the first time. Hence, this research additionally uncovers (i) the effects of integral products on the supplier integration level, and (ii) the counter-effects of supplier integration on the PM level.

Keywords: product modularity; organisational modularity; mirroring hypothesis; new product development; NPD; inventory management; buyer-supplier relationship; vertical integration; supply chain management; SCM; supplier integration; modular products; Turkey; manufacturing industry.

DOI: 10.1504/IJISM.2016.081278

International Journal of Integrated Supply Management, 2016 Vol.10 No.3/4, pp.283 - 308

Received: 05 Dec 2015
Accepted: 27 Sep 2016
Published online: 01 Jan 2017 *

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