The Influence of Modular Design on Enterprises’ Innovation Flexibility: The Mediating Role of Knowledge Co-creation and the Moderating Role of Environmental Scanning

Abstract

Abstract: Innovation flexibility is essential to the sustainable development of enterprises in an uncertain environment, so a highly valued question is how to improve enterprises’ innovation flexibility. According to the modular theory, this paper constructs a theoretical model to explain the mechanism of how modular design influences enterprises’ innovation flexibility. The research systematically analyzes the relationship among modular design, knowledge co-creation, environmental scanning and innovation flexibility. Then the study deeply explores the mechanism of how modular design influences enterprises’ innovation flexibility. The empirical research results based on the data of 323 questionnaires are as follows. Firstly, modular design has significant positive impact on enterprises’ innovation flexibility. Secondly, joint knowledge co-creation plays fully mediating effect between modular design and innovation flexibility, and embedded knowledge co-creation plays partially mediating effect between modular design and innovation flexibility. Thirdly, environmental scanning positively moderates the impact of modular design on innovation flexibility, joint knowledge co-creation and embedded knowledge co-creation. Lastly, environmental scanning positively moderates the mediating role of joint knowledge co-creation between modular design and innovation flexibility, and it also positively moderates the mediating role of embedded knowledge co-creation between modular design and innovation flexibility. That is, the higher the environmental scanning, the more positive impact of modular design on innovation flexibility through joint knowledge co-creation and embedded knowledge co-creation. The study clarifies the path and boundary for the impact of modular design on enterprises’ innovation flexibility, and it deepens and expands the research on modularization and innovation flexibility. The research also provides ideas for improving the flexibility of enterprise innovation.

Key words: innovation flexibility, modular design, knowledge co-creation, environmental scanning

Zhu Xuechun, Xu Xin, Zhang Wei. The Influence of Modular Design on Enterprises’ Innovation Flexibility: The Mediating Role of Knowledge Co-creation and the Moderating Role of Environmental Scanning[J]. Management Review, 2025, 37(8): 105-116.

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