Published in:Harvard Business School Finance Working Paper ; No. 11-054
Extent:
1 Online-Ressource (45 p)
Language:
Not determined
DOI:
10.2139/ssrn.1340445
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 29, 2010 erstellt
Description:
The existing theory of modularity explains how modular designs create value. We extend this theory to address value appropriation. A product or process design that is modular with respect to intellectual property (IP) allows firms to better capture value in situations where knowledge and value creation are distributed across many actors. We propose a theory of IP modularity based on value maximization net of transaction and agency costs. We then use case examples to extend the theory into practical settings and derive strategic recommendations and empirical predictions