Specifically, we suggest how the use of open-system modular product architectures as the basis for new products is likely to result in dynamics of new market formation that call for new approaches to the strategic management of innovation and product creation. We also suggest technology and economic development policies favoring use of open-system modular architectures may stimulate new market formation and related economic development by providing platforms for accelerating technology development and dissemination, facilitating the formation of an industrial base of assemblers and component suppliers, assisting new firms in building customer relationships, enabling more geographically diffused economic development within countries, and facilitating development of export markets. We also suggest directions for further research into the potential for open-system modular product architectures to enable bottom-of-the-pyramid innovation processes, frugal engineering in developing economies, and development of low-cost product variations more generally.
Sanchez, R. and Hang, C.C. (2017), "Modularity in New Market Formation: Lessons for Technology and Economic Policy and Competence-Based Strategic Management", Sanchez, R., Heene, A., Polat, S. and Asan, U. (Ed.) Mid-Range Management Theory: Competence Perspectives on Modularity and Dynamic Capabilities (Research in Competence-Based Management, Vol. 8), Emerald Publishing Limited, Bingley, pp. 131-165. https://doi.org/10.1108/S1744-211720170000008006
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