Mirroring or misting: On the role of product architecture, product complexity, and the rate of product component change

This paper contributes to the literature on the within-firm and across-firm mirroring hypothesis – the assumed architectural mapping between firms’ strategic choices of product architecture and firm architecture, and between firms’ architectural choices and the industry structures that emerge. Empirical evidence is both limited and mixed and there is evidently a need for a more nuanced theory that embeds not only whether the mirroring hypothesis holds, but under what product architecture and component-level conditions it may or may not hold. We invoke an industrial economics perspective to develop a stylised product architecture typology and hypothesise how the combined effects of product architecture type, product complexity and the rate of product component change may be associated with phases of mirroring or misting. Our framework helps to reconcile much existing mixed evidence and provides the foundation for further empirical research.