On the strategic use of product modularity for market entry

Abstract

We model the conditions under which firms should enter the market with modular products that support multiple standards instead of an integral product that supports a single standard. Product modularity enables firms to broaden their portfolios and increase their chances of investing in the “right” technologies early in a technology cycle. Entry with integral products instead occurs later in the cycle. We test the model’s predictions on a sample of the Local Area Network industry entrants during the 1990s.

Aligning restaurants and artificial intelligence computing of food delivery service with product development

“…Strategic adaptation arises according to the need to combine environmental changes with organizational resources, and joint decision-making becomes essential to operations (Zhang et al , 2022). Likewise, technological competence connects organizational agility and returns identified options (Arrieta et al , 2023). The product development process should be structured as a staged investment (van Bommel et al , 2019) for flexibility and monitoring options created.…”

The power of modularity today: 20 years of “Design Rules”

“…Hence, the discussion of complementarities in product and industrial architectures needs to be revisited in the light of new phenomena that make network externalities a cornerstone of the analysis of strategy and industrial evolution. In this vein, the contributions on how design rules initially evolve (Sanchez et al, 2023) and how firms leverage modularity as a way to de-risk new technologies (Arrieta et al, 2023) are important illustrations of this potential for future research. Similarly, alongside digital technologies, new energy technologies are emerging that fundamentally change the architectures of traditional industries, such as the automotive sector (Alochet et al, 2023;Murmann et al, 2023).…”