Linking product modularity and innovativeness to supply chain management in the Italian furniture industry

Much of the literature on modularity assumes that firms with modular products adopt modular organization. In the realm of supply chain management, no consensus has been reached on the effects of product modularity on supply chains (SC). This paper investigates whether SC choices depend on product modularity and innovativeness, and how SC choices can be aligned to these product features to maximize performance. A medium scale survey has been performed in the Italian furniture industry. By means of factor and cluster analyses, the SC of firms that introduced products with different levels of modularity and innovativeness have been compared. The results show that both product features must be considered when designing the SC.