Effects of customization and product modularization on financial performance

The need amongst customers for customized products is constantly increasing, and companies can gain competitive advantage by being able to offer a broad product assortment. This study\u27s purpose is to investigate the financial effects of using product modularization as a strategy to manage the need for product customization The paper is based on analysis of data collected through an online survey of Swedish manufacturing firms. The results show that product mod-ularization is a mediator between the need for customization and financial performance, sug-gesting that product modularization is an efficient strategy to facilitate companies\u27 needs for developing customized products