Exploring the Risks of Value Chain Modularity: Electronics Outsourcing During the Industry Cycle of 2001-2002

Abstract

This paper focuses mainly on the issues of supply-base concentration and increased buyer-supplier lock-in through an examination of recent trends in what is perhaps the best case of value chain modularity, product-level electronics. Wherever possible, the discussion is placed in the context of the huge industry cycle that began its upward swing in 1992, peaked in late 1999, and is currently working its way downward in search of a bottom. This cycle has created an excellent opportunity to explore the performance of value chain modularity under