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While service scholars have generally supported the idea that service modularity enhances firm performance, the literature offers very little evidence of the actual process through which service modularity continuously contributes to firm performance. The purpose of this paper is to examine the link from a capability perspective: service modularity capabilities-service modularity-new service advantage-firm performance, as well as the moderating role of radical innovation capability in the effect of service modularity on new service advantage.

To examine this link, data were collected from a cross-industry survey of 231 leading service firms. Structural equation modeling and hierarchical moderated regression analyses were employed to test the model.

Analyses reveal that new service advantage mediates the service modularity-firm performance relationship. Moreover, service modularity capabilities act in an important antecedent role to configure service modularity. Among the findings, it is worth emphasizing that radical innovation capability not only strengthens the positive effect of, but also alleviates the negative effect of, service modularity on new service advantage.

This study provides a more complete understanding of how service modularity enhances firm performance by discovering the hidden role of new service advantage that bridges service modularity and firm performance, clarifying the role of service modularity capabilities in configuring service modularity, and confirming the important role of radical innovation capability in sustaining the effectiveness of service modularity.

The purpose of this paper is to show how modularity manifests in a service context, more specifically in the provision of care and services to independently living elderly.

Four case studies provide insight into the specification of relevant components and their subsequent assembly into a customized package of care and services.

In all cases, component specification and package construction take place in two phases: partly before and partly during care delivery. Early client involvement allows for a combination of standard components that have a lower level of customization, whereas late client involvement allows for adaptation of these components resulting in a higher level of customization. The paper proposes that modularity theory should distinguish between the creation of modular offerings in care provision versus their creation in goods production, since the findings are the exact reverse of the state‐of‐the art knowledge in manufacturing modularity.

The empirical part of this paper is limited to providers of elderly care and services in The Netherlands and is exploratory in nature. However, the newness of care and service modularity justifies the exploratory research approach.

This paper offers elderly care organizations in‐depth understanding of their complex and multi‐faceted specification process. The insights help both care and service providers to make well‐considered decisions as to what level of client involvement to allow and the type of modularity to apply.

This paper contributes to the emerging literature on service modularity.

The literature on modularity is extensive, but most research has been concerned with the manufacturing sector and much less with the service sector. The purpose of this paper is to investigate the existing research, to provide a critique of the empirical literature on service modularity and to discuss future research opportunities.

To perform this analysis of service modularity, a list of top-tier journals in the field of business management and organisation was compiled. From there, each and every article was identified, examined, coded and classified into high-level themes. These were then reviewed, analysed and interpreted.

This paper argues that the application of modularity in services will likely be influenced by certain characteristics that distinguish services from products. Second, modularity, from the service perspective, has been closely connected to productisation of services, and the discussion of modularity related to services has been greatly influenced by the earlier discussion on product modularity. This paper concludes that modularity in the service development context is still seeking its theoretical “identity” and requires further theoretical and empirical work on service design modularity conceptualisation, methods and measures.

This paper has reviewed several significant fields with which research on service modularity has been concerned. It captures and presents the core notion of service modularity in a critical way that might spur further research in the field.

The purpose of this paper is to contribute to the scientific debate on innovation in tourism by focusing on modularity as emerging approach for creating personalized tourism experiences. The focus on modularity has two objectives. The first is to demonstrate that tourism offering can be conceived as bundles of products and services with growing relevance of knowledge; the second is to highlight how its adoption by tourism firms can enhance their competitiveness and contribute to assuring greater involvement of tourists in co-creating travel experiences.

The study adopts an exploratory approach based on multiple case studies to analyze two innovative tourism companies located in the Apulia region (Southern Italy).

Categorized as integrators of a wide set of tourist products and services, the cases provide a consistent scenario for deepening understanding of the meaning of modularity in tourism.

The study offers an original contribution in determining the meaning of modularity in the field of knowledge-intensive services by demonstrating that the adoption of a modularity approach in the designing and offering by tourism companies can provide interesting benefits for their competitiveness and the greater satisfaction of customers.

The study offers implications for companies and decision makers involved in delivering more personalized tourism experiences.

Elements of originality can be identified in this contribution to the extension of studies on modularity in the service sector as well as for its strategic contribution at the co-creation of personalized tourism experience.

The present challenge for many service firms is to develop an offering that is flexible and open for tailoring and at the same time achieves efficiency through standardizing processes. Modularity has been suggested as being one tool for achieving this. The goal of the present study is to find out how services provided in modular form (here referred to as service modularity) can exert an influence on the value perception of the customer in the professional services field.

Empirical part consists of a case study of a large provider of professional services involving construction, engineering, procurement and project management service. Data were gathered by semi structured theme interviews of representatives of the case company and representatives of two of its customers.

The modular processes had an influence on the customer's expectations that are related to the experienced quality of the service, and hence they create value for the customer. In addition to the service outcome, the modular processes enhanced the customer's trust in the service provider's employees and their skills in co‐operating in a suitable way during the service process. The organizational modularity eased the customer's tasks of managing the project implementation.

The present study contributes the knowledge related to modularity in business services by incorporating the knowledge from the theoretical discussion on customer perceived value.

The purpose of this paper is to explore how functional and appropriateness arguments influence the adoption of modularity principles during the design of a professional service architecture.

Action design research was conducted to examine the design process of a modular service architecture for specialised elderly care by a multi-professional group. Data collection methods included, partly participatory, observations of the interactions between professionals during the design process, interviews and document analysis. Data analysis focussed on the emerging design choices and the arguments underlying them.

A wide range of both functional and appropriateness considerations were enlisted during the design process. The three core modularity principles were adapted to varying degrees. In terms of the design outcome, the interdependencies between the modularity principles necessitated two trade-offs in the modular design. A third trade-off occurred between modularity and the need for professional inference where services were characterised by uncertainty. Appropriateness was achieved through the professionals reframing and translating the abstract modularity concept to reconcile the concept’s functionality with their professional norms, values and established practices.

The study adds to service modularity theory by formulating three trade-offs that are required in translating the core modularity principles into a functional set of design choices for a multi-professional service environment. Moreover, the inherent intertwinedness of the core modularity principles in professional services requires an iterative design process. Finally, the authors saw that the ambiguity present in the service modularity concept can be used to develop a design that is deemed appropriate by professionals.

The purpose of this paper is to review and analyze the modularity literature to identify the established and emerging perspectives.

A systematic literature search and review was conducted through the use of bibliometrics and network analysis. The analysis identified structure within the literature, which revealed how the research area evolved between 1990 and 2015. Based on this search, the paper establishes the basis for analyzing the structure of modularity literature.

Factors were identified within the literature, demonstrating how it has evolved from a primary focus on the modularity of products to a broader view of the applicability of modularity. Within the last decade, numerous research areas have emerged within the broader area of modularity. Through core-periphery analysis, eight emerging sub-research areas are identified, of which one is the study of modularity in the context of services.

Although bibliographic methods are limited as they are based on common citations within the field, they enable systematic analysis and the identification of structure within an emergent field of research. Such analysis has implications by for a growing and inter-disciplinary field like modularity by providing overview and suggesting future directions.

This paper contributes by conducting a systematic review based on the citation structure within modularity and identifies the established and emerging areas of research on modularity.

This study shows various pathways manufacturers can take when embarking on digital servitization (DS) journeys. It builds on the DS and modularity literature to map the strategic trajectories of product–service–software (PSSw) configurations.

The study is exploratory and based on the inductive theory building method. The empirical data were gathered through a workshop with focus groups of 15 servitization manufacturers (with 22 respondents), an on-site workshop (in-depth case study), semi-structured interviews, observations and document study of archival data.

The DS trajectories are idiosyncratic and dependent on design architectures of PSSw modules, balancing choices between standardization and innovation. The adoption of software systems depends on the maturity of the industry-specific digital ecosystem. Decomposition and integration of PSSw modules facilitate DS transition through business model modularity. Seven testable propositions are presented.

With the small sample size from different industries and one in-depth case study, generalizing the findings was not possible.

The mapping exercise is powerful when top management from different functional departments can participate together to share their expertise and achieve consensus. It logs the “states” that the manufacturer undergoes over time.

The Digital Servitization Cube serves as a conceptual framework for manufacturers to systematically map and categorize their current and future PSSw strategies. It bridges the cross-disciplinary theoretical discussion in DS.

The purpose of this paper is to update an article written by the author in the Harvard Business Review almost 50 years ago.

The paper evaluates the present status of the phenomena of modularity (for both product and service components). This is done by reviewing all existing literature on multitudinous facets of the subject and discussing applications with practitioners.

Modularity remains a splintered concept, perhaps because so many different types of application exist. Heterogeneity stymies systemization. Nevertheless, successful applications exist. This International Journal of Operations & Production Management, dedicated to modularity, testifies to significant facets of accomplishment and continued challenges (e.g. optimum shoe sizing and modular construction). Also, production managers have not become boardroom planners (as was expected 45 years ago). Potential cost savings of modularity do not occur because off‐shoring provided another way to dramatically lower production costs – albeit at the expense of quality problems.

All management functions participate in modularity issues. Though marketing does not thrive in a commodity‐environment, it has not advocated modularity as a way to offset commoditization nor as a means of improving quality. Finance has been the cheer leader for off‐shore decisions, but a tipping point may be in sight (i.e. recognizing the hidden costs of off‐shore seduction).

If mass customization, using modularity, develops economic clout, it is likely that production will switch from overseas to domestic bases. The impact on domestic economies will be significant.

The link between modularity and off‐shoring needs to be recognized, researched, and discussed.

Applying “modularity” principles in services is gaining in popularity. The purpose of this paper is to enrich existing service modularity theory and practice by exploring how services are being decomposed and how the modularization aim and the routineness of the service(s) involved may link to different decomposition logics. The authors argue that these are fundamental questions that have barely been addressed.

The authors first built a theoretical framework of decomposition steps and the design choices involved that distinguished six decomposition logics. The authors conducted a systematic literature search that generated 18 empirical articles describing 16 service modularity cases. The authors analysed these cases in terms of decomposition logic and two main contingencies: modularization aim and service routineness.

Only three of the 18 articles explicitly addressed the service decomposition by reflecting on the underlying design choices. By unravelling the decomposition in each case, the authors were able to identify the decomposition logic and found four of the six theoretically derived logics: single-level process oriented; single-level outcome oriented; multilevel outcome oriented; and multilevel combined orientation. Although the authors did not find a direct relationship between the modularization aim and the decomposition logic, the authors did find that single-level decomposition logics seem to be mainly applied in non-routine service offerings whereas the multilevel ones are mainly applied in routine service offerings.

By contributing to a common understanding of modular service decomposition and proposing a framework that explicates the design choices involved, the authors enable an enhanced application of the modularity concept in services.