Journal of International Business Studies

, Volume 38, Issue 1, pp 84–106

Antecedents and outcomes of modular production in the Brazilian automobile industry: a grounded theory approach


DOI: 10.1057/palgrave.jibs.8400244

Cite this article as:
Kotabe, M., Parente, R. & Murray, J. J Int Bus Stud (2007) 38: 84. doi:10.1057/palgrave.jibs.8400244


Our paper focuses on how foreign automobile manufacturers in Brazil have implemented and benefited from strategic modularization. Based on our case studies and in-depth interviews, we developed a theoretical framework to examine the antecedents and outcomes of strategic modularization. Our theoretical framework suggests that strategic modularization may help improve a firm's positional advantage by reducing the cost of managing tacit knowledge. In addition, the adoption of strategic modularization influences the nature of relationships with major suppliers, further blurring the boundaries of the firm.


outsourcing modularization modular production tacit knowledge supply chain management global sourcing 

Copyright information

© Academy of International Business 2007

Authors and Affiliations

  • Masaaki Kotabe
    • 1
  • Ronaldo Parente
    • 2
  • Janet Y Murray
    • 3
  1. 1.Temple University, The Institute of Global Management StudiesPhiladelphiaUSA
  2. 2.Rutgers University, School of Business Camden
  3. 3.College of Business Administration, University of Missouri-St LouisSt LouisUSA

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