Abstract

After the modularization of computer production technology in the last century, market value gradually dispersed from the integrated enterprise IBM, leading to a gradual transformation in the organizational structure of the industry. However, the implementation of technological modularization does not necessarily result in the modularization of industrial division of labor. This paper addresses the evolutionary problem of organizational modularization by constructing a supramarginal model and transforming it into a choice problem for division of labor structures. The modularization of product production technology provides a uniform standard for interfaces between various components of complex products, leading to positive transaction efficiency between module manufacturers and module integrators. As transaction efficiency improves, the production organizational structure shifts from integration to modularized division of labor. Based on this foundation, the paper analyzes the impact of industry modularized division of labor on individual welfare and market expansion.

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