We expect cultural distance to have no moderating impact on the relationship between modularity and TSU development. A few studies on technological integration and cultural distance note that adopting auxiliary technological solutions helps to reduce communication and cooperation costs in international buyer-supplier or headquarters-subsidiary relationships (Sheu et al., 2004; Sinkovics, Jean, Roath, & Cavusgil, 2011). In such contexts, cultural differences increase the cost of cooperation, such that firms may have to devise expensive control mechanisms. However, modular product design can reduce technology transaction-related hazards and costs through the integration of knowledge within modules (Furlan, Cabigiosu, & Camuffo, 2014; Langlois, 2002; Sanchez & Mahoney, 1996).