On the strategic use of product modularity for market entry

Jose Pablo, Roberto Fontana and Stefano Brusoni

Industrial and Corporate Change, 2023, vol. 32, issue 1, 155-180

Abstract: We model the conditions under which firms should enter the market with modular products that support multiple standards instead of an integral product that supports a single standard. Product modularity enables firms to broaden their portfolios and increase their chances of investing in the “right” technologies early in a technology cycle. Entry with integral products instead occurs later in the cycle. We test the model’s predictions on a sample of the Local Area Network industry entrants during the 1990s.

Date: 2023
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