How modularity influences product innovation
Purpose: The purpose of this paper is to offer novel and complementary insights into the relationship between product modularity and product innovation by investigating the mediating role of module suppliers' relationship-specific investments which include both property-based relationship-specific investment (PRSI) and knowledge-based relationship-specific investment (KRSI). Design/methodology/approach: This paper is an empirical study based on structural equation modelling, with a sample of 121 core firms of high-tech modular cooperation in China. Findings: The findings indicated that product modularity had a significant positive effect on product innovation; product modularity was positively related to module suppliers' PRSI; module suppliers’ KRSI had a direct effect on product innovation while PRSI had an indirect effect on product innovation through KRSI; the relationship between product modularity and product innovation was serially multi-mediated by module suppliers’ PRSI and KRSI. Practical implications: Modular product design and modular cooperation governance guidance for core firms and cooperative investment strategies guidance for module suppliers were provided. Originality/value: This study is the first attempt to analyse how product modularity affects product innovation in the context of inter-firm modular cooperation by revealing the mediating role of module suppliers' relationship-specific investments.
Year of publication: |
2020
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Authors: | Sun, Yaowu ; Zhong, Qi |
Published in: |
Management Decision. - Emerald, ISSN 0025-1747, ZDB-ID 2023018-7. - Vol. 58.2020, 12 (21.02.), p. 2743-2761
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Publisher: |
Emerald |
Saved in:
Online Resource
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