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Product modularity and performance in the global auto industry in China: the mediating roles of supply chain integration and firm relative positional advantage

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ABSTRACT Drawing on the knowledge-based view of the firm, we examine the role of supply chain integration and firm relative positional advantage (FRPA) in mediating the main effects of product… Click to show full abstract

ABSTRACT Drawing on the knowledge-based view of the firm, we examine the role of supply chain integration and firm relative positional advantage (FRPA) in mediating the main effects of product modularity on firm performance. We use data collected from module suppliers to the Chinese automobile industry to empirically test the model. The findings reveal the mediating roles of supply chain integration and FRPA as well as the joint effects of supply chain integration and FRPA on the product modularity-firm performance relationship. The study also tests the application of the mirroring hypothesis in the context of the Chinese auto industry.

Keywords: product modularity; chain integration; supply chain; firm

Journal Title: Asia Pacific Business Review
Year Published: 2020

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