Bottlenecks, modules and dynamic architectural capabilities
By: Carliss Y. Baldwin
Contributors: Harvard Business School
Series: Working paper / Harvard Business School -- 15-028; Working paper (Harvard Business School) -- 15-028
Publisher: Harvard Business School
Published: 2014
Place of publication: Boston]
Language: eng
Number of pages: 51
Description: Architectural capabilities are an important subset of dynamic capabilities that provide managers with the ability to see a complex technical system in an abstract way and change the system's structure by rearranging its components. In this paper, I argue that the essence of dynamic architectural capabilities lies in the effective management of bottlenecks and modules in conjunction with organizational boundaries and property rights in a technical system. Bottlenecks are points of value creation and capture in any complex man-made system. The tools a firm can use to manage bottlenecks are, first, an understanding of the modular structure of the technical system; and, second, an understanding of the contract structure of the firm, especially its organizational boundaries and property rights. Although these tools involve disparate bodies of knowledge, they must be used in tandem to achieve maximum effect.
Notes: "October 2014" -- Publisher's website.

Includes bibliographical references (pages 43-51).