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As contemporary firms become reliant on networks of supply chain partners, their performance increasingly depends on their supply chains' ability to be responsive to changing markets. This research addresses the theoretically neglected question of how and why the interplay between product design modularity and IT infrastructure flexibility influences supply chain performance. They develop two key ideas. First, product design modularity enhances performance because it increases supply chain responsiveness, a critical mediating explanatory concept. Second, product design modularity and IT infrastructure flexibility are complementary design choices: Increasing one increases the benefits of increasing the other.
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