Research on relationship between competitive priorities and business performance based on modular customization

In order to adapt to new competitive environment, enterprises will adopt modular customization of production patterns. Through analysis of the modular customization theory and the competitive priorities theory, this paper proposes the theoretical hypothesis of the relationship between competitive priorities and business performance in the modular customization. On the basis of International Manufacturing Strategy Survey (IMSS) database, competitive priorities are divided into five elements of innovation, quality, flexibility, delivery and cost in modular customization by using factor analysis, then based on the results, the paper establishes Structural Equation Model (SEM) to research relationship between the competitive priorities and the business performance in the modular customization. The results indicate that there is positive correlation between competitive priorities and business performance in modular customization, but they are different in the degree of influence.