Product Modularization and Organizational Coordination

Journal article, 2013

Product modularization can bring a lot of benefits, for example shorter lead-time since different modules can be developed in parallel. Existing literature proposes that by standardizing interfaces, it is possible to avoid coordination problems in the development of different modules; coordination problems that might be caused by conflicts calling for management decisions. We test this assumption by investigating two modules in a new car development project. Despite having standardized and simple interfaces to other modules, managerial involvement in coordination was still needed. Hence, dividing a product into modules does not eliminate the need for a managerial hierarchy making important decisions.