The role of modularity and integration in enhancing manufacturing performance

Abstract

Purpose -The purpose of this paper is to examine the impacts of modularity-based manufacturing practices (MBMP) and manufacturing system integration (MSI) on manufacturing performance (MP) using absorptive capacity as an important enabling factor. Design/methodology/approach -Constructs were developed through a comprehensive literature review. Structural equation modeling was used to test the research model and hypotheses based on a large sample of 303 US manufacturing firms. Findings -Both MBMP and MSI have significant impacts on MP. The positive effects of MBMP on MP are stronger than those of system integration. The absorptive capacity of a firm facilitates better use of modularity practices and system integration. Practical implications -More attention should be given to modularity practices in resource allocation planning. Also, system integration together with modularity practices can generate significantly higher MP. Originality/value -The paper is the first large-scale empirical study to examine the effects of absorptive capacity on MSI and MBMP, which in turn impacts MP. Furthermore, the findings empirically support that a combination strategy of modularity and system integration can help manufacturing firms to achieve higher performance.

The adoption of Industry 4.0 technologies in SMEs: results of an international study

“…Absorptive capacity (AC) has been defined as the capability that enables firms to effectively capture, transform, integrate and use the internal and external knowledge to improve their competitive position (Cohen and Levinthal, 1990;Zahra and George, 2002). AC is nurtured by the prior company's knowledge and by the effectiveness of its organizational communication processes, at the point that Liao et al (2010) sustain that "firms with higher AC are more likely to succeed in implementing new technologies because they have more related experiences or have a more effective communications infrastructure." This seems particularly important for SMEs that, despite they recur to external relationships due to the lack of internal resources, regularly struggle with making purposively good use of them (Agostini and Nosella, 2019).…”

“…Just to make some examples, Lin (2014) states that a firm AC is expected to increase the likelihood and extent of e-supply chain management adoption and Tu et al (2006) show that AC is expected to favor the level of time-based manufacturing practices adoption. Finally, Liao et al (2010) state that a firm AC positively influences the use of new manufacturing and technology practices, such as modularity and system integration.…”

An examination of a modular supply chain: a construction sector perspective

“…The issues described above require the effective alignment of both product and service suppliers and a clear understanding of the need to integrate practices and procedures via effective relational and architectural decisions. Whilst modular practices and principles have matured within the computing and automotive sectors (Doran, 2004) there is a clear need for the alignment of modular construction and supplier integration within the modular construction sector so that suppliers can effectively respond to the increasingly sophisticated architectural requirements of modular clients (Bankvall et al , 2010; Liao et al , 2010).…”

المرونة التصنیعیة: علاقة المکونات والعوامل الداعمة بالأداء الصناعی لشرکات قطاع الأعمال العام للغزل والنسیج بإقلیم وسط الدلتا

“…‫أ‬ . (Rogers, 2008;Swink, Narasimhan, & Wang, 2007;Vokurka & O'Leary-Kelly, 2000) : - (D'Souza, 2006;Frichol, 2014;Larso et al, 2009;Liao, Tu, & Marsillac, 2010;Rogers, 2008;Valdez, 2010) :…”