Product modularity, supplier integration and operational performance: evidence from the high performance manufacturing project

In the literature, several studies empirically investigate product modularity effect on some dimensions of performance, such as quality, efficiency, flexibility, manufacturing cycle time and customer service. This study intends to contribute to this research stream, by investigating the mechanisms by which modularity affects these performance dimensions, and thus how companies can obtain a better performance by developing modular products. Basing on a sample of 266 manufacturing firms, this research empirically proves that the effect of product modularity on operational performance is positive and significant, and that this effect is mediated by the integration with suppliers.