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      • Faculty Publications  (112)

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      • 8 Jul 2013
      • Lecture

      The Impact of Modularity on Intellectual Property and Value Appropriation

      By: Carliss Y. Baldwin
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      Baldwin, Carliss Y. "The Impact of Modularity on Intellectual Property and Value Appropriation." Lecture at the Trento Summer School, Cognitive and Experimental Economics Laboratory (CEEL) and Università degli studi di Trento, Trento, Italy, July 8, 2013.
      • Summer 2013
      • Article

      IP Modularity: Profiting from Innovation by Aligning Product Architecture with Intellectual Property

      By: Joachim Henkel, Carliss Y. Baldwin and Willy C. Shih
      Firms seeking to take advantage of distributed innovation and outsourcing can bridge the tension between value creation and value capture by modifying the modular structure of their technical systems. Specifically, this article introduces the concept of "IP... View Details
      Keywords: Modularity; Value Appropriation; Distributed Innovation; Open Innovation; Innovation Strategy; Intellectual Property; Value
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      Henkel, Joachim, Carliss Y. Baldwin, and Willy C. Shih. "IP Modularity: Profiting from Innovation by Aligning Product Architecture with Intellectual Property." California Management Review 55, no. 4 (Summer 2013): 65–82.
      • 2013
      • Chapter

      Open Innovation and Organizational Boundaries: Task Decomposition, Knowledge Distribution and the Locus of Innovation

      By: Karim R. Lakhani, Hila Lifshitz-Assaf and Michael L. Tushman
      This chapter contrasts traditional, organization-centered models of innovation with more recent work on open innovation. These fundamentally different and inconsistent innovation logics are associated with contrasting organizational boundaries and organizational... View Details
      Keywords: Innovation; Organizational Boundaries; Institutional Logics; Modular Innovation; Open Innovation; Knowledge Sharing; Innovation Strategy; Organizational Design; Boundaries; Collaborative Innovation and Invention
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      Lakhani, Karim R., Hila Lifshitz-Assaf, and Michael L. Tushman. "Open Innovation and Organizational Boundaries: Task Decomposition, Knowledge Distribution and the Locus of Innovation." Chap. 19 in Handbook of Economic Organization: Integrating Economic and Organization Theory, edited by Anna Grandori, 355–382. Northampton, MA: Edward Elgar Publishing, 2013.
      • December 2012 (Revised April 2025)
      • Case

      AmTran Technology Ltd.

      By: Willy Shih, Jyun-Cheng Wang and Karen E. Robinson
      As an original design manufacturer (ODM) of television sets and leading supplier to Vizio, a market leader in the U.S. for LCD flat panel TVs, AmTran Technology Ltd. uses what founder Alpha Wu describes as a "WE" model in which western companies perform sales,... View Details
      Keywords: Modularity; Technology Transitions; Analog; Digital; Television; TV; Flat-panel; ATSC; NTSC; Video; Global Strategy; Innovation and Management; Innovation Leadership; Innovation Strategy; Technological Innovation; Growth and Development Strategy; Product Development; Product Design; Supply Chain; Business Strategy; Competitive Strategy; Technology Adoption; Digital Platforms; Electronics Industry; Taiwan; United States; Japan
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      Shih, Willy, Jyun-Cheng Wang, and Karen E. Robinson. "AmTran Technology Ltd." Harvard Business School Case 613-069, December 2012. (Revised April 2025.)
      • 2012
      • Article

      Organization Design for Business Ecosystems

      By: Carliss Y. Baldwin

      The modern corporation has long been the central focus of the field of organization design. Such firms can be likened to nation-states: they have boundaries that circumscribe citizen-employees, and they engage in production and trade. But individual corporations are... View Details

      Keywords: Modularity; Business Ecosystems; Distributed Innovation; Problem Solving; Property Rights; Organization Design; Networks; Integration; Competition; Organizational Design; Innovation and Management
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      Baldwin, Carliss Y. "Organization Design for Business Ecosystems." Special Issue on The Future of Organization Design. Journal of Organization Design 1, no. 1 (2012).
      • November 2012 (Revised May 2013)
      • Case

      ASUSTeK and the Google Nexus 7 Tablet

      By: Willy C. Shih and Jyun-Cheng Wang
      Days after Jerry Shen introduced a new tablet computer at the Consumer Electronics Show, a Google meeting convinced him to go with a lower price point and co-branding as the Nexus 7. While his company would have a premier position at launch, companies like Samsung... View Details
      Keywords: Nexus; Google; ASUSTeK; Android; Tablet; Kindle; Kindle Fire; Notebook Computers; ODM; Apple; Price Point; App Store; Ecosystem; Open Handset Alliance; Reference Design; iPad; EMS; Electronic Manufacturing Services; Smartphone; Innovation and Management; Innovation Strategy; Technological Innovation; Product Marketing; Product Launch; Product Positioning; Industry Structures; Product Design; Product Development; Business Strategy; Competitive Strategy; Mobile and Wireless Technology; Digital Platforms; Information Technology; Internet and the Web; Computer Industry; Information Technology Industry; Technology Industry; Taiwan; United States
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      Shih, Willy C., and Jyun-Cheng Wang. "ASUSTeK and the Google Nexus 7 Tablet." Harvard Business School Case 613-056, November 2012. (Revised May 2013.)
      • 2012
      • Working Paper

      Modularity and Organizations

      By: Carliss Y. Baldwin
      Modularity describes the degree to which a complex system can be broken apart into subunits (modules) that can be recombined in various ways. Modularity is important for organizations and the economy because the boundaries of organizational units and corporations are... View Details
      Keywords: Complex Systems; Information Hiding; Loosely-coupled Systems; Mirroring; Mirroring Hypothesis; Modules; Modularity; Near-decomposable Systems; Product Architecture; Option Value; Organizational Design; Complexity
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      Baldwin, Carliss Y. "Modularity and Organizations." Harvard Business School Working Paper, No. 13-046, November 2012. (To appear in the Elsevier International Encyclopedia of the Social and Behavioral Sciences, 2nd edition; available on request to the author.)
      • Article

      Exploring the Duality Between Product and Organizational Architectures: A Test of the 'Mirroring' Hypothesis

      By: Alan MacCormack, Carliss Y. Baldwin and John Rusnak
      A variety of academic studies argue that a relationship exists between the structure of an organization and the design of the products that the organization produces. Specifically, products tend to "mirror" the architectures of the organizations in which they are... View Details
      Keywords: Organization Design; Architecture; Modularity; Open Source Software; Communication; Design; Governance; Management Practices and Processes; Open Source Distribution; Product Design; Mission and Purpose; Organizational Structure; Performance; Problems and Challenges; Behavior; Software
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      MacCormack, Alan, Carliss Y. Baldwin, and John Rusnak. "Exploring the Duality Between Product and Organizational Architectures: A Test of the 'Mirroring' Hypothesis." Research Policy 41, no. 8 (October 2012): 1309–1324.
      • Oct 2012
      • Lecture

      Modularize—Allocate—Protect: How Firms Profit from Open Modular Systems

      By: Carliss Y. Baldwin
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      Baldwin, Carliss Y. "Modularize—Allocate—Protect: How Firms Profit from Open Modular Systems." Lecture at the Digital Economy Seminar, MIT Center for Digital Business, Cambridge, MA, October 2012.
      • September 2012 (Revised April 2013)
      • Case

      Digital Microscopy at Carl Zeiss: Managing Disruption

      By: Willy Shih
      Ulrich Simon, the head of the Microscopy business group at Carl Zeiss AG knew that his unit was facing a disruptive threat, so he chartered a special team to tackle the industrial segment. Given a high degree of autonomy, the project team developed an understanding of... View Details
      Keywords: Modularity; High Technology Products; Emergent Strategy; Product Lines; Corporate Strategy; Digital Platforms; Disruptive Innovation; Technology Industry; Germany
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      Shih, Willy. "Digital Microscopy at Carl Zeiss: Managing Disruption." Harvard Business School Case 613-039, September 2012. (Revised April 2013.)
      • Sep 2012
      • Keynote Speech

      Modularize—Allocate—Protect: How Firms Profit from Open Modular Systems

      By: Carliss Y. Baldwin
      Citation
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      Baldwin, Carliss Y. "Modularize—Allocate—Protect: How Firms Profit from Open Modular Systems." 13th International CINet Conference, CINet, Rome, Italy, September 2012.
      • August 2012 (Revised August 2013)
      • Background Note

      Competency-Destroying Technology Transitions: Why the Transition to Digital Is Particularly Challenging

      By: Willy Shih
      Some technology transitions are exceedingly difficult for incumbent firms to execute. The bankruptcy filing by the Eastman Kodak Company highlighted the difficulty companies faced when their core business transitioned from an analog to a digital world. Kodak's business... View Details
      Keywords: Technology Transitions; Competency-destroying; Digital; Analog; Digital Transition; Modular; Modularity; Technological Change; Radical Innovation; Incremental Innovation; Architectural Innovation; Modular Innovation; Sustaining Innovation; Competency-enhancing; Noise Propagation; Perfect Copying; Digital Music; Digital Media; Consumer Electronics; Kodak; Sony; Panasonic; Disruptive Innovation; Technology Adoption; Transition; Change Management; Consumer Products Industry; United States
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      Shih, Willy. "Competency-Destroying Technology Transitions: Why the Transition to Digital Is Particularly Challenging." Harvard Business School Background Note 613-024, August 2012. (Revised August 2013.)
      • 2012
      • Working Paper

      IP Modularity: Profiting from Innovation by Aligning Product Architecture with Intellectual Property

      By: Joachim Henkel, Carliss Y. Baldwin and Willy C. Shih
      In this paper we explain how firms seeking to take advantage of distributed innovation and outsourcing can bridge the tension between value creation and value capture by modifying the modular structure of their technical systems. Specifically, we introduce the concept... View Details
      Keywords: Modularity; Value Appropriation; Distributed Innovation; Open Innovation; Strategy; Open Source Distribution; Value; Complexity; Intellectual Property
      Citation
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      Henkel, Joachim, Carliss Y. Baldwin, and Willy C. Shih. "IP Modularity: Profiting from Innovation by Aligning Product Architecture with Intellectual Property." Harvard Business School Working Paper, No. 13-012, August 2012. (Revised November 2012.)
      • Aug 2012
      • Lecture

      Modularity and Distributed Innovation: Opportunities and Threats

      By: Carliss Y. Baldwin
      Citation
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      Baldwin, Carliss Y. "Modularity and Distributed Innovation: Opportunities and Threats." Lecture at the Academy of Management Annual Meeting, Boston, MA, August 2012.
      • 2012
      • Chapter

      IP Modularity in Software Ecosystems: How SugarCRM's IP and Business Model Shape Its Product Architecture

      By: Josef Waltl, Joachim Henkel and Carliss Y. Baldwin
      Keywords: Business Model; Digital Platforms; Open Source Distribution; Complexity; Applications and Software; Intellectual Property
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      Waltl, Josef, Joachim Henkel, and Carliss Y. Baldwin. "IP Modularity in Software Ecosystems: How SugarCRM's IP and Business Model Shape Its Product Architecture." In Software Business: Proceedings of the Third International Conference, ICSOB 2012, by M. A. Cusumano, B. Iyer, and N. Venkatraman, 94–106. Berlin, Germany: Springer-Verlag, 2012.
      • 11 May 2012 - 12 May 2012
      • Conference Presentation

      Patents and Modularity

      By: Carliss Y. Baldwin
      Citation
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      Baldwin, Carliss Y. "Patents and Modularity." Paper presented at the 2nd PatCon, Boston, MA, May 11–12, 2012.
      • March 2012
      • Article

      Does America Really Need Manufacturing?

      By: Gary P. Pisano and Willy C. Shih
      Too many U.S. companies base decisions about where to locate production largely on narrow financial criteria. They don't consider whether keeping manufacturing at home makes more sense strategically or take into account the impact it might have on their ability to... View Details
      Keywords: Production; Geographic Location; Innovation and Invention; Competitive Advantage; Product Design; Risk Management; Manufacturing Industry; United States
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      Pisano, Gary P., and Willy C. Shih. "Does America Really Need Manufacturing?" Harvard Business Review 90, no. 3 (March 2012).
      • 2011
      • Working Paper

      From Single Deals to Negotiation Campaigns

      By: David A Lax and James K. Sebenius
      Negotiation scholars typically take the individual deal, or a few linked deals, as the unit of analysis. While analyzing one deal requires a familiar conceptual framework, doing the same for a broader "negotiation campaign" calls for a different focus and set of... View Details
      Keywords: Negotiation Deal; Framework; Business Subsidiaries; Agreements and Arrangements; Mergers and Acquisitions; Information Management; Finance; Business and Shareholder Relations; Corporate Governance; Business and Government Relations; Governing Rules, Regulations, and Reforms; Cross-Cultural and Cross-Border Issues
      Citation
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      Lax, David A., and James K. Sebenius. "From Single Deals to Negotiation Campaigns." Harvard Business School Working Paper, No. 12-046, December 2011.
      • 2012
      • Working Paper

      The Impact of Modularity on Intellectual Property and Value Appropriation

      By: Carliss Y. Baldwin and Joachim Henkel
      Modularity is a means of partitioning technical knowledge about a product or process. When state-sanctioned intellectual property rights are ineffective or costly to enforce, modularity can be used to hide information and thus protect intellectual property (IP). We... View Details
      Keywords: Strategy; Open Source Distribution; Value; Complexity; Intellectual Property
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      Baldwin, Carliss Y., and Joachim Henkel. "The Impact of Modularity on Intellectual Property and Value Appropriation." Harvard Business School Working Paper, No. 12-040, December 2011. (Revised November 2012.)
      • 18 Nov 2011
      • Conference Presentation

      Impact of Modularity on Intellectual Property and Value Appropriation

      By: Carliss Y. Baldwin
      Keywords: Intellectual Property; Value
      Citation
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      Baldwin, Carliss Y. "Impact of Modularity on Intellectual Property and Value Appropriation." Paper presented at the Strategy Seminar, University of North Carolina at Chapel Hill, Kenan-Flagler Business School, November 18, 2011.
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