Market Performance Implications of Modularization: Evidence from Global Auto Firms Operating in China

Belay Seyoum; Yunshan Lian

doi:10.1016/j.ibusrev.2018.01.008

Market Performance Implications of Modularization: Evidence from Global Auto Firms Operating in China

Belay Seyoum
, Yunshan Lian

Research output: Contribution to journal › Article › peer-review

Abstract

Auto firms play an increasingly important role in national economies. However, their internationalization strategies, especially the trend towards modularization has been underexplored in the international business literature. Drawing on the resource based theory, we develop hypotheses on the link between modularization and market performance. Analyzing a sample of 262 auto parts suppliers in China, the study shows the positive influence of modularization on firm performance and the moderating role of knowledge sharing tools and physical proximity in this relationship. In addition, these relationships are channeled by firms’ strategic actions to maintain superior business performance against competitors (firm positional advantage).

Original language	American English
Pages (from-to)	852-866
Number of pages	15
Journal	International Business Review
Volume	27
Issue number	4
DOIs	https://doi.org/10.1016/j.ibusrev.2018.01.008
State	Published - Aug 1 2018

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http://nsuworks.nova.edu/hcbe_facarticles/989

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title = "Market Performance Implications of Modularization: Evidence from Global Auto Firms Operating in China",

abstract = "Auto firms play an increasingly important role in national economies. However, their internationalization strategies, especially the trend towards modularization has been underexplored in the international business literature. Drawing on the resource based theory, we develop hypotheses on the link between modularization and market performance. Analyzing a sample of 262 auto parts suppliers in China, the study shows the positive influence of modularization on firm performance and the moderating role of knowledge sharing tools and physical proximity in this relationship. In addition, these relationships are channeled by firms{\textquoteright} strategic actions to maintain superior business performance against competitors (firm positional advantage).",

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AB - Auto firms play an increasingly important role in national economies. However, their internationalization strategies, especially the trend towards modularization has been underexplored in the international business literature. Drawing on the resource based theory, we develop hypotheses on the link between modularization and market performance. Analyzing a sample of 262 auto parts suppliers in China, the study shows the positive influence of modularization on firm performance and the moderating role of knowledge sharing tools and physical proximity in this relationship. In addition, these relationships are channeled by firms’ strategic actions to maintain superior business performance against competitors (firm positional advantage).

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Market Performance Implications of Modularization: Evidence from Global Auto Firms Operating in China

Abstract

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