The Use of Modular Organizational Forms: An Industry-Level Analysis

In many industries, integrated hierarchical organizations have been replaced by nonhierarchical entities that are permeable, interconnected, and modular. Other industries, however, maintain relatively high levels of integration. This study uses the logic of general systems modularity to explain why...

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Bibliographic Details
Published in:Academy of Management journal 2001-12, Vol.44 (6), p.1149-1168
Main Authors: Schilling, Melissa A, Steensma, H Kevin
Format: Article
Language:English
Subjects:
Alliances
Costs
Flexibility
Hierarchies
Hierarchy
Industry
Integration
Manufacturers
Manufacturing
Modularity
Organizational behavior
Organizational change
Organizational structure
Organizations
Studies
System theory
Technological change
U.S.A
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Summary:In many industries, integrated hierarchical organizations have been replaced by nonhierarchical entities that are permeable, interconnected, and modular. Other industries, however, maintain relatively high levels of integration. This study uses the logic of general systems modularity to explain why in some industries there is a greater use of modular organizational forms, including contract manufacturing, alternative work arrangements, and alliances, than in other industries. This model was tested using data from 330 US manufacturing industries.
ISSN:0001-4273
1948-0989
DOI:10.5465/3069394