The Influence of Product Modularity on Customer Perceived Customization: The Moderating Effects Based on Resource Dependence Theory

In order to satisfy the specific needs of customers, customization becomes increasingly important to a firm. Once firms adopt product modularity strategy, they may not always have enough motivation to implement customization strategy since more effort and resources are needed in doing so. Based on resource dependence theory, we tested our hypothesis using dyadic survey data from both customer and supplier sides, combined with the objective data. It is found that product modularity is negatively related to customer perceived customization (CPC), which in turn increases customer satisfaction and project cost. Shared vision attenuates the negative effect of product modularity, while supplier mobilization capability intensifies the negative effect of product modularity.