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Firms today operate in an environment that is characterized by increasing digitization and rapid transformation. Implementing modular architectural design in software incorporated in digitized products thereby provides them with the flexibility needed to successfully adapt their offering to changing environmental conditions. However, this is not a straightforward task. Factors influencing the implementation of modular design are thus of great importance to system engineers. While existing research highlights the relevance of customer involvement as well as environmental factors individually, their contingent effects remain unexplored. Our paper addresses this gap in the literature by empirically investigating the interaction of customer knowledge integration mechanisms with market and technological turbulence, to determine their effect on the implementation of modularity in products’ software architecture. We thereby draw upon theories of modularity as well as insights on customer involvement from information systems (IS) and new product development (NPD) literature.



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