DIFFUSION AND PERFORMANCE OF MODULAR PRODUCTION IN THE US APPAREL INDUSTRY

This article examines the determinants of the diffusion of team produc tion systems (modular assembly) and the impact of these systems on fir m performance relative to traditional assembly systems in the apparel industry. The article draws on an extensive survey providing detailed information on a wide range of manufacturing practices and retail rela tionships in the U.S. apparel industry. We find that recent diffusion of modular practices is driven primarily by the product market, We als o show that modular systems affect business-unit performance (particul arly operating profits) where they are combined with complementary inv estments in information systems linking apparel suppliers with retail customers.