{'fraction_non_alphanumeric': 0.018502202643171806, 'fraction_numerical': 0.005726872246696035, 'mean_word_length': 5.640350877192983, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Factors Driving the Adoption of Increasingly Modular or Increasingly Integrated Forms

Many systems migrate towards increasing or decreasing modularity, yet no explicit causal models exist to explain this process. This paper builds upon a general theory of modular systems (Schilling 2000), to explain the migration of systems towards or away from increasingly modular forms. It then applies this model to a specific context: the adoption of modular organizational forms. In many industries, integrated hierarchical organizations are being replaced by non-hierarchical entities that are permeable and interconnected. This paper applies the logic of general systems modularity to explain why in some industries we may expect greater use of modular organizational forms such as contract manufacturing, contingent workers, and alliances than in other industries. The paper then presents data from 330 manufacturing industries that was used to test this model (Schilling & Steensma 2001). An examination of technology trajectories in a wide range of industries indicates that many product systems migrate towards increasing modularity. Product systems that were once tightly integrated may be disaggregated into loosely coupled components that may be mixed and matched, allowing much greater flexibility in end configurations. For instance, personal computers were originally introduced as all-in-one packages (such as Intel’s MCS-4, the Kenback-1, the Apple II or the Commodore PET), but rapidly evolved into modular systems that enable the mixing and matching of components from different vendors. Publishers have also embraced modularity, by utilizing recent information technology advances to enable instructors to assemble their own textbooks from book chapters, articles, cases or their own materials. Even large home appliance manufacturers now offer their products in modular configurations—for example some stoves now offer customers the ability to remove the burners and plug in other cooking devices such as barbecue grills and pancake griddles. Recent research also indicates that a similar phenomenon may be manifest in the emergence of new organizational designs. In many industries, integrated hierarchical organizations have been replaced by non-hierarchical