Modularity applied to new product development together with the externalisation of production has been a strategy adopted by automotive companies. New product development in the context of modular strategy implies a redistribution of inherent activities of production. This is based on a work division among assemblers and their suppliers. In this context, this study investigates the implications of modular strategies in the process of transferring value-added activities in new product development between first and second tier suppliers. The study is developed based on a multiple case study approach. The investigated companies were positioned in distinct levels of modular competencies ('embrionary', 'in development', and 'mature'), according to empirical evidence. A relationship between the stage of maturity and major new product development practices was identified.
Modularity; Modular project; Product development; Automotive sector
