Modularization (MD) and IT in Auto Industry: An Empirical Study in PRC

This chapter is a pioneer study on the application and impact of modularization in the Chinese auto industry. The role of IT as a mediator and moderator is also analyzed in this study. Although Modularization (MD) has become a global trend in the auto industry, few empirical studies have been conducted because it is a difficult task to operationalize the multi-faceted, complex modularization. This research made an analysis through the lenses of international business theories like internationalization theory and Knowledge-Based-View of the firm (KBV). Quantitative methodology like regression and correlation analysis was applied in this study, based on the data collected from 250 automotive firms in China. Academically, this research fills in the gap of empirical study on modularization and its impact in the auto industry of developing economies. In practice, it can help decision makers in the auto industry make a more scientific decision about whether and how they should go into modularization, and have a better understanding of the characteristics of the global auto industry in developing economies.