This paper develops an integration of transactions costs theory and real options theory that leads to a more complete representation of the problem of economic organizing. By recognizing the opportunity costs associated with internalization of specific-use assets when flexible assets are also...

Product competition in a growing number of markets is undergoing a profound transformation. Some firms are now beginning to use new kinds of 'flexible designs' for products and organizations to pursue innovative product strategies that generate unprecedented levels of product variety and change....

Many industries are now evolving new kinds of competitive environments which are not adequately explained by traditional strategy theory. This article introduces a movement to make strategy theory more relevant to contemporary forms of competition by rethinking both the content and process of...

This paper addresses modularity as a basis for organizing economic activity. We first define the key concepts of architecture and of modularity as a special form of architecture. We then suggest how modular systems of all types may exhibit several properties of fundamental importance to the...