Digital Innovation, Entrepreneurship and New Business Models
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Paper Type
Short
Paper Number
1485
Description
Innovation literature has discussed at length how modular product architectures provide organizations with the dynamic capabilities needed to respond effectively to changes in the environment. However, despite the growing prevalence of digitized products, it has thus far largely neglected differences in assumptions for modularity between physical products and software. We address this gap in the literature by drawing on findings from the new product development (NPD) field and supplementing them with knowledge from information systems (IS) literature. We propose a research model that considers how modularity in products’ software architectures and its translation through experimentation in the NPD process affect radical innovation. We employ structural equation modeling to test the associated hypotheses using data from our cross-sectional survey of senior information technology and NPD managers. In doing so, this study adds to an understanding of how modular systems theory can be used to develop dynamic capabilities in today’s digital world.
Recommended Citation
Schamper, Simona; Greven, Andrea; and Brettel, Malte, "Reconsidering Modularity for Radical Innovation in the Digital World" (2020). ICIS 2020 Proceedings. 4.
https://aisel.aisnet.org/icis2020/digital_innovation/digital_innovation/4
Reconsidering Modularity for Radical Innovation in the Digital World
Innovation literature has discussed at length how modular product architectures provide organizations with the dynamic capabilities needed to respond effectively to changes in the environment. However, despite the growing prevalence of digitized products, it has thus far largely neglected differences in assumptions for modularity between physical products and software. We address this gap in the literature by drawing on findings from the new product development (NPD) field and supplementing them with knowledge from information systems (IS) literature. We propose a research model that considers how modularity in products’ software architectures and its translation through experimentation in the NPD process affect radical innovation. We employ structural equation modeling to test the associated hypotheses using data from our cross-sectional survey of senior information technology and NPD managers. In doing so, this study adds to an understanding of how modular systems theory can be used to develop dynamic capabilities in today’s digital world.
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