Reconsidering modular design rules in a dynamic service context

Modular design rules are rooted in a tradition of process design for physical production. In response to an emerging information systems research agenda for design logic in the realm of services and digital goods, and through the lens of dynamic capabilities theory, the research presented here re-examines traditional modular design in the context of a service-centric volatile marketplace. A complex adaptive systems simulation artifact from prior literature is augmented with a novel operationalization of market volatility, and a series of hypotheses are tested that demonstrate a need for revision of modular design rules in a dynamic context. Rules that have historically isolated the modular design decision to characterizations of task interaction are expanded to incorporate a new objective: adaptive parity with the environment. It is the goal of this continuing research stream to make early contributions in the recently proposed agenda for new organizing logic in digital innovation and services.