The firm is the central actor for the effectuation of innovation and technological change. The large industrial …

organizations literature. Recent writings have tended to offer modularity as, at least, a partial solution to this design problem …. Two unifying themes characterize the extant literature on modularity. The first addresses the contingencies under which … modularity wherein the focus is on the advantages that modular design structures have over their integrated counterparts. However …

The existing theory of modularity explains how modular designs create value. We extend thistheory to address value … inductivetheory of “IP modularity,” from which we derive testable propositions and managerialimplications.... …