Antecedents and Outcomes of Modular Production in the Brazilian Automobile Industry: A Grounded Theory Approach

• Published in: Journal of international business studies Vol. 38; no. 1; pp. 84 - 106
• Main Authors: Kotabe, Masaaki, Ronaldo Parente, Murray, Janet Y.
• Format: Journal Article
• Language: English
• Published: London Palgrave Macmillan Journals 01.01.2007; Palgrave Macmillan UK; Palgrave Macmillan
• Series: Journal of International Business Studies
• Subjects: Automobile industry; Automobiles; Automotive industries; Brazil; Business and Management; Business Strategy/Leadership; Business structures; Business studies; Case studies; Corporate strategies; Design specifications; Grounded theory; Industrial management; Industrial sector; International Business; Knowledge management; Lean manufacturing; Literature reviews; Management; Modularity; Modularization; Organization; Outsourcing; Production management; Production planning; Strategic business units; Studies; Subcontracting; Suppliers; Supply chain management; Supply chains; Tacit knowledge; Brazil; tacit knowledge; modularization; modular production; outsourcing; supply chain management; global sourcing
• ISSN: 0047-2506; 1478-6990
• DOI: 10.1057/palgrave.jibs.8400244

Our paper focuses on how foreign automobile manufacturers in Brazil have implemented and benefited from strategic modularization. Based on our case studies and in-depth interviews, we developed a theoretical framework to examine the antecedents and outcomes of strategic modularization. Our theoretical framework suggests that strategic modularization may help improve a firm's positional advantage by reducing the cost of managing tacit knowledge. In addition, the adoption of strategic modularization influences the nature of relationships with major suppliers, further blurring the boundaries of the firm.