Product Modularity and Its Impact on Competitive Performance: An Investigation of the Mediating Effects of Integration Strategies

The purpose of this research is to study the effect of product modularity on performance outcomes. The mediating effects of supplier, design, and manufacturing integrations are also examined. This study is based on a survey of 381 manufacturing firms in Saudi Arabia. Using empirical research, this study analyses the direct and indirect effects of product modularity on performance outcomes. Results indicate a direct, positive relationship between product modularity and performance outcomes and found mixed support on the effects of product modularity on mediation strategies. This research tests theories that have been primarily applied in western country settings. The value of this paper is that, it is one of the first of this kind, conducted in the Middle East region, and adds empirical support, which was previously lacking in extant literature.