Abstract
This paper reviews structural change in the automotive sector from 1997–2007. We find that, following internal framing contests, OEMs led efforts to change their sector’s architecture, starting from both strong and weak competitive positions and working with suppliers to advocate a new vision based on modularity and outsourcing. As the risks and costs of this vision became apparent, OEMs were able to reverse course and reaffirm their hierarchical control on the sector, taking advantage of structural features that weren’t salient ex ante. We consider why certain agents initiated this status-quo challenging change, and identify how sector structure moderated their (and suppliers’) efforts to implement it. We document the complex change process, driven by agency, structure, and heterogeneity in firms’ understanding of their sector’s architecture.
Original language | English |
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Pages (from-to) | 1942-1967 |
Number of pages | 26 |
Journal | Strategic Management Journal |
Volume | 37 |
Issue number | 9 |
Early online date | 1 Oct 2015 |
DOIs | |
Publication status | Published - 28 Aug 2016 |
Keywords
- industry architecture
- agency
- framing contests
- value dynamics
- modularity
- outsourcing