Abstract:By using 381 data from the manufacturing enterprises in PRD, the mediating effect of strategic flexibility (proactive flexibility and reactive flexibility) and the moderating effect of environment dynamism on the relationship between product modularity (modular design and modular production) and competitive advantage (brand strength and mass customization) are tested respectively. The results show that product modularity has positive effect on competitive advantage and strategic flexibility plays a total mediating effect on the relationship between product modularity and competitive advantage; reactive flexibility has a total mediating effect on the relationship between modular design and mass customization and a partial mediating effect on the relationship between modular production and mass customization, but proactive flexibility not; environmental dynamism has a positive moderating effect on the relationship between modular production and brand strength, but a negative moderating effect on the relationship between modular design and competitive advantage. In addition, the moderating effect of environment dynamism on the relationship between modular production and mass customization is not significant.