Abstract
PurposeThe purpose of this paper is to investigate how product modularity (PM) is related to mass customization (MC) capability and plant competitiveness.Design/methodology/approachThe paper tests hypothesized relationships using structural equation modeling with an international dataset.FindingsPM is not directly related to plant competitiveness. Inter‐functional design coordination (IDC) is found to be critical in fostering plant competitiveness.Practical implicationsManagers need to put IDC mechanisms in place to foster MC capabilities and, thereby, enhance plant competitiveness.Originality/valueWhile the existing literature mostly argues for a direct relationship between PM and competitiveness, the paper shows that IDC and MC capability are crucial intervening variables in this relationship.
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