Modularity in building mass customization capability: The mediating effects of customization knowledge utilization and business process improvement

This study investigates the relationships among product/process modularity, organizational learning practices, and mass customization (MC) capability. Drawing on organizational learning theory, we propose that organizational learning practices help to embed the knowledge gained from modular design practices into organizational processes, enhancing MC capability. We empirically test the mediating effects of two organizational learning practices - customization knowledge utilization and business process improvement - on the relationship between product/process modularity and MC capability, using data collected from Chinese manufacturers. We find strong support for the mediating role of organizational learning practices in the relationship between modularity and MC capability. Our findings have implications for management strategies and point to directions for further research in this area.