Industry Structure and Modular Product Architectures: An Interpretation of the Bicycle Industry

This paper aims at describing network dynamics through the lenses of modularity. Different types of networks exist as ways of coping with the dynamics of industry demands that are based on modular product architectures. In order to distinguish between different types of mechanisms in which networks (operating with modular product architectures may) evolve, two types of networks are introduced: ‘marketdriven product architecture network’ (i.e., when the industrial network is driven by product architecture that is controlled by the market) and ‘firm-driven product architecture network’ (when the industrial network is driven by product architecture that is controlled by the firm). The history of the technological development of bicycle, since 1890s to 1990s, illustrates how the bicycle industry survived two cycles of disaggregation-concentration.