Hidden structure and value network: shedding light on position assessment

Abstract

This study focuses on hierarchical structures of value networks of service systems. But how can the central and influential network positions be found in the value network? The position of actors is extracted using the hidden structure method (HSM) and centrality metrics of social network analysis (SNA). Both analyses apply adjacency matrix data that reveal direct dependencies of actors in a value network. We measured indegree, outdegree, betweenness, and closeness centralities to each actor to compare SNA and HSM results. HSM can reveal the actors who conduct the most significant activities, as well as more peripheral actors who have a strong influence on core actors. Thus, HSM does not neglect the hierarchy between actors. Our methodological contribution suggests that in parallel with widely used SNA centrality measures, researchers should leverage HSM to define influential actors. Two pharmacy concepts in Finland provide the empirical research context.