Abstract

Many natural, physical and social networks commonly exhibit power-law degree distributions. In this paper, we discover previously unreported asymmetrical patterns in the degree distributions of incoming and outgoing links in the investigation of large-scale industrial networks, and provide interpretations. In industrial networks, nodes are firms and links are directed supplier-customer relationships. While both in- and out-degree distributions have “power law” regimes, out-degree distribution decays faster than in-degree distribution and crosses it at a consistent nodal degree. It implies that, as link degree increases, the constraints to the capacity for designing, producing and transmitting artifacts out to others grow faster than and surpasses those for acquiring, absorbing and synthesizing artifacts provided from others. We further discover that this asymmetry in decaying rates of in-degree and out-degree distributions is smaller in networks that process and transmit more decomposable artifacts, e.g. informational artifacts in contrast with physical artifacts. This asymmetry in in-degree and out-degree distributions is likely to hold for other directed networks, but to different degrees, depending on the decomposability of the processed and transmitted artifacts.

Highlights

  • Many technologies and products today are not designed and produced by single integrated firms, but large-scale industrial ecosystems spanning many specialized but complementary firms

  • Complex network analysis may illuminate hidden factors that affect the working of design and production processes, and discover new network mechanisms that may be shared by general types of networks

  • The electronics industrial network does not comply to a pure hierarchy or directed acyclic graph, which earlier studies suggested as a general structure property of production networks [5,6,8]

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Summary

Introduction

Many technologies and products today are not designed and produced by single integrated firms, but large-scale industrial ecosystems spanning many specialized but complementary firms. Such industrial ecosystems can be represented as networks of firms (as nodes) connected by inter-firm transactional relationships (as links), i.e. industrial networks, and analyzed using graph theory and network analysis techniques [1,2,3,4]. An electronics industrial network creates artifacts such as computers, mobile phones and televisions whose basic function is to process information. Such system functions and the physical properties of exchanged artifacts across firms may condition the topologies of the networks [5,6,811]. Comparatively little is known about the topologies of industrial networks and the physical antecedents and functional significance of possible topologies

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