When does the mirror get misted? How the rate of component change and product complexity impact the mirroring hypothesis

The mirroring hypothesis – the assumed architectural mapping between firms’ strategic choices of product architecture and firm architecture, and between firms’ architectural choices and the industry structures – is a central theme within modularity theory. Empirical support for this hypothesis across numerous studies is significant, but mixed – suggesting the need to focus less upon whether the hypothesis holds and more upon the conditions under which it holds. As part of this shift in focus, within this research we utilize an industrial economics perspective to develop a stylised product architecture typology and hypothesise how the combined effects of product architecture type, product complexity and the rate of product component change may be associated with phases of mirroring or misting. Our framework helps to reconcile some existing mixed evidence and provides the foundation for further empirical research.

[1]  Alan MacCormack,et al.  Exploring the Structure of Complex Software Designs: An Empirical Study of Open Source and Proprietary Code , 2006, Manag. Sci..

[2]  O. Williamson,et al.  The mechanisms of governance , 1996 .

[3]  G. Stigler The Division of Labor is Limited by the Extent of the Market , 1951, Journal of Political Economy.

[4]  Francesco Zirpoli,et al.  Modularity, interfaces definition and the integration of external sources of innovation in the automotive industry , 2013 .

[5]  Ron Sanchez,et al.  Modularity in the mediation of market and technology change , 2008, Int. J. Technol. Manag..

[6]  Tomoatsu Shibata,et al.  Empirical analysis of evolution of product architecture: Fanuc numerical controllers from 1962 to 1997 , 2005 .

[7]  Ron Sanchez,et al.  Modularity, flexibility, and knowledge management in product and organization design , 1996 .

[8]  Kim B. Clark,et al.  Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of , 1990 .

[9]  G. Hoetker Do Modular Products Lead to Modular Organizations , 2006 .

[10]  Arnaldo Camuffo,et al.  When the mirror gets misted up: Modularity and technological change , 2014 .

[11]  K. Pavitt,et al.  Knowledge Specialization, Organizational Coupling, and the Boundaries of the Firm: Why Do Firms Know More than They Make? , 2001 .

[12]  Arnaldo Camuffo,et al.  Beyond the "Mirroring" Hypothesis: Product Modularity and Interorganizational Relations in the Air Conditioning Industry , 2012, Organ. Sci..

[13]  K. Weick,et al.  Loosely Coupled Systems: A Reconceptualization , 1990 .

[14]  Peter Galvin,et al.  A case study of knowledge protection and diffusion for innovation: managing knowledge in the mobile telephone industry , 2008, Int. J. Technol. Manag..

[15]  Ron Sanchez,et al.  Modularity and economic organization: concepts, theory, observations, and predictions , 2013 .

[16]  Markus C. Becker,et al.  The Limits of Design and Engineering Outsourcing: Performance Integration and the Unfulfilled Promises of Modularity , 2010 .

[17]  R. V. Hoek Clockspeed: Winning Industry Control in the Age of Temporary Advantage , 2000 .

[18]  Christopher L. Tucci,et al.  Interfirm Modularity and Its Implications for Product Development , 2005 .

[19]  Daniel A. Levinthal,et al.  Bounded Rationality and the Search for Organizational Architecture: An Evolutionary Perspective on the Design of Organizations and Their Evolvability , 2004 .

[20]  Richard C. M. Yam,et al.  A case study of product modularization on supply chain design and coordination in Hong Kong and China , 2005 .

[21]  Paulo J. Gomes,et al.  Linking modularity with problem solving and coordination efforts , 2008 .

[22]  O. Sorenson,et al.  Technology as a complex adaptive system: evidence from patent data , 2001 .

[23]  Peter Galvin,et al.  MODULARITY ON INDUSTRY STRUCTURE: THE CASE OF THE WORLD THE EFFECT OF PRODUCT BICYCLE INDUSTRY , 2001 .

[24]  Christopher Alexander Notes on the Synthesis of Form , 1964 .

[25]  K. Weick Educational organizations as loosely coupled systems , 1976, Gestión y Estrategia.

[26]  Pietro Romano,et al.  Customer‐supplier integration forms in the air‐conditioning industry , 2006 .

[27]  HERBERT A. SIMON,et al.  The Architecture of Complexity , 1991 .

[28]  Kim B. Clark,et al.  Design Rules: The Power of Modularity , 2000 .

[29]  Carliss Y. Baldwin,et al.  The Mirroring Hypothesis: Theory, Evidence and Exceptions , 2016 .

[30]  Daniel A. Levinthal,et al.  The Dual Role of Modularity: Innovation and Imitation , 2008, Manag. Sci..

[31]  Ron Sanchez,et al.  'Closing the Loop' in an Architectural Perspective on Strategic Organizing: Towards a Reverse Mirroring Hypothesis , 2013 .

[32]  M. Porter Towards a dynamic theory of strategy , 1991 .