document: Modularity in technology and organization The paper is an attempt to raid both the literature on modular design and the literature on property rights to create the outlines of a modularity theory of the firm . Such a theory will look at firms , and other organizations , in terms of the partitioning of rights-understood as protected spheres of authority-among cooperating parties . It will assert that organizations reflect nonmodular structures , that is , structures in which decision rights , rights of alienation , and residual claims to income do not all reside in the same hands
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