Abstract: As a new institutional arrangement in the market, modular organization highlights the superiority of value innovation. Path of value innovation in modular organization means the set of matched elements, such as organizational means of growth, strategic plan, and the choice of implementation approach. This paper firstidentifiesthree paths of value innovation of modular organization: competition-cooperation interaction path, value convection path,modular operating path, then compares elements and efficiency of the three value innovation paths. Based on this, a path evolution model is built, and path evolves in the direction of "competition-cooperation interaction path → value convection path→modular operating path". Finally, the process of path evolution is empirically analyzed by using Metersbonweas a study case.

Key words: modular organization, value innovation, path evolution