Citation

Modularity, flexibility, and knowledge management in product and organization design

Ron Sanchez, Joseph T. Mahoney

Strategic Management Journal (1996)

TL;DR

Modular products enable modular organizations

This paper links product modularity to organizational modularity, arguing that modular products enable modular organizations. The authors show that the degree of product modularity affects organizational design options and knowledge management approaches.

This connection is central to the chapter's treatment of Samsung, where modular smartphone architecture corresponds to divisional organizational structure. The paper explains why product and organizational modularity tend to co-evolve.

Key Findings from Sanchez & Mahoney (1996)

  • Modular products enable modular organizations
  • Product architecture affects organizational design options
  • Modularity affects knowledge management approaches
  • Product and organizational modularity co-evolve

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