Antecedents and outcomes of modular production in the Brazilian automobile industry: a grounded theory approach

Masaaki Kotabe, Ronaldo Parente and Janet Y Murray
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Masaaki Kotabe: Temple University, The Institute of Global Management Studies, Philadelphia, USA
Ronaldo Parente: Rutgers University, School of Business Camden
Janet Y Murray: College of Business Administration, University of Missouri-St Louis, St Louis, USA

Journal of International Business Studies, 2007, vol. 38, issue 1, 84-106

Abstract: 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. Journal of International Business Studies (2007) 38, 84–106. doi:10.1057/palgrave.jibs.8400244

Date: 2007
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