Market Performance Implications of Modularization: Evidence from Global Auto Firms Operating in China

Belay Seyoum*, Yunshan Lian

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Auto firms play an increasingly important role in national economies. However, their internationalization strategies, especially the trend towards modularization has been underexplored in the international business literature. Drawing on the resource based theory, we develop hypotheses on the link between modularization and market performance. Analyzing a sample of 262 auto parts suppliers in China, the study shows the positive influence of modularization on firm performance and the moderating role of knowledge sharing tools and physical proximity in this relationship. In addition, these relationships are channeled by firms’ strategic actions to maintain superior business performance against competitors (firm positional advantage).
Original languageAmerican English
Pages (from-to)852-866
Number of pages15
JournalInternational Business Review (IBR)
Volume27
Issue number4
Early online dateFeb 9 2018
DOIs
StatePublished - Jun 15 2018
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2018 Elsevier Ltd

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