The Effect of Product Modularity on Supplier Integration

This chapter seeks to identify the set of conditions under which the mirroring hypothesis holds, proposing that modular product architecture leads to organizational modularity (i.e., supplier disintegration). The contradictory results on the mirroring hypothesis in the extant literature call for a more holistic analysis of the issue. To this end, this chapter develops a multi-objective mathematical model, allowing for the simultaneous examination of potentially influential factors, including those claimed to be neglected by the mirroring hypothesis. The findings reveal that modular product architecture does not necessarily lead to supplier disintegration, but that its effect is contingent on a firm's priorities.

Toward a Conceptualization of Organizational Modularity

Organizations are complex systems made up of many different elements interacting with each other. One particular form of organizational design, emerging from the need to deal with organizational complexity and environmental uncertainty, is modularity. There are several studies in the literature dealing with organizational modularity. However, neither a common definition nor a complete measurement model is proposed for this concept. What are the common properties of an organization characterized as highly modular? How are these properties related to organizational design parameters? None of these questions have been adequately addressed in the literature. Thus, this chapter aims to identify the common properties of an organization which can be considered to be highly modular and to propose a theoretical conceptualization of organizational modularity based on a framework originally linking Baldwin and Clark's visible design rules with Mintzberg's organizational design parameters and provides a suggestion for operationalizing the concept of organizational modularity.

Challenges in Identifying and Interpreting Organizational Modules in Morphology

Form is a rich concept that agglutinates information about the proportions and topological arrangement of body parts. Modularity is readily observable in both the variation of proportions (variational modules) and the organization of topology (organizational modules). The study of variational modularity and of organizational modularity faces similar challenges regarding the identification of meaningful modules and the validation of generative processes; however, most studies in morphology focus solely on variational modularity, while organizational modularity is much less understood. A possible cause for this bias is the successful development in the last twenty years of morphometrics, and specially geometric morphometrics, to study patters of variation. This contrasts with the lack of a similar mathematical framework to deal with patterns of organization. Recently, a new mathematical framework has been proposed to study the organization of anatomical parts using tools from Network Theory, so-called anatomical network analysis. This essay explores the potential use of this new framework – and the challenges it faces in identifying and validating biologically meaningful modules in morphological systems –, by providing an example of a complete analysis of modularity of the human skull and upper limb. Finally, we suggest further directions of research that may bridge the gap between variational and organizational modularity studies.

Exploring the “mid office” concept as an enabler of mass customization in services

Purpose – Mass customization (MC) is a well-established strategy for providing high levels of customization while achieving the scale economies of high volume production. The purpose of this paper is to explore a new service design configuration, the “mid office,” as a service interface which may support front office customization capabilities while protecting the back office from disruption. The authors posit that it may facilitate MC by enabling product/service and organizational modularity. Design/methodology/approach – The research is based on a single case study of a large European bank’s payment services, traditionally high volume, low variety operations. The bank adopted a MC strategy which involved the creation of a mid office. The analysis spans product/service and organizational design. Findings – When combined with menu-driven customization and reuse modularization, the mid office appears to support partial rather than full MC. It facilitates postponement of customization to the assembly stage through service coproduction, organizational decoupling, and the streamlining of employee adaptive behaviors. Research limitations/implications – The study bears the limitations typical of case study research; however this was appropriate given the exploratory nature of the research into a nascent concept. Practical implications – The paper identifies a series of design decisions to enable practitioners to choose between full and partial service MC, ensuring design coherence through a mirror effect of service modularity and organizational modularity. Originality/value – It is argued that the mid office is a service interface which facilitates partial MC by enabling service and organizational modularity. The paper reinterprets the archetypes of full and partial MC in service terms, and proposes a contingent approach to service MC implementation based on service value.