CIRJE-J-41. Takeishi, Akira, Takahiro Fujimoto and Seunghwan Ku, "Modularization in the Automobile Industry: Interlinked Hierarchies of Product, Production and Procurement", January 2001.

This paper analyzes the modularization in the world auto industry. The modularization in the industry has been involving architectural changes in product, production, and supplier systems, with each region (Japan, Europe, and the U.S.A.) emphasizing different purposes and aspects. As an attempt to understand such multi-faceted, complex processes coherently, this paper proposes a conceptual framework that sees development-production activities as multiple hierarchies of products, processes, and inter-firm boundaries. With this framework, drawing on case studies and questionnaire survey data, the paper examines the on-going processes of modularization. It is argued that there are some tensions among the three hierarchies, and such tensions may lead to further changes in product, production, and supplier-system architectures in the industry in a dynamic and path-dependent manner.