Search

Article Information


Modular Strategies: B2B Technology and Architectural Knowledge
Richard, Pierre J., and Timothy M. Devinney
47/4  (Summer 2005): 86-113

Business-to-business information technology systems are becoming increasingly important in firm supply chains. Utilizing the concept of modularity, this article clarifies the strategic implications of B2B technology. There are two generic B2B strategies: modularization, which allows a firm to rent out its internal capabilities to others in its industry; and architectural entrepreneurship, which alters the supply chain by allowing a central coordinating firm to facilitate arrangements that trust issues and information asymmetries had previously made impossible. Which modular strategy is appropriate depends on the role the focal firm plays in the supply chain and their supply chain indispensability. Only firms with deep architectural knowledge can take full advantage of these modular strategies.

 

California Management Review

Berkeley-Haas's Premier Management Journal

Published at the University of California for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

Learn more
Follow Us