Structural characteristics of complex supply chain networks

Abstract

AbstractFirms source goods and services in complex, global supply chains. The network structures of these far‐reaching supply chains are believed to influence both firm‐level and supply chain‐level behavior. However, researchers and managers are challenged to manage extended supply chain networks because firms typically do not actively oversee their entire supply chain network. The extant research on the underlying network topologies is limited and relies on untested structural assumptions. This study addresses the latter issue by examining structural topologies in supply chain networks. We draw from the network and supply chain literature and empirically investigate the presence of topologies found in complex networks. In particular, we look for: small‐world, scale‐free, community, and hierarchical network structures. We study 21 extended (five‐tier) supply chain networks of firms representing various industries. Our analysis provides evidence for community, scale‐free, and hierarchical structures within the observed supply chain networks. The identification of network topologies is relevant to understand how to study supply chain networks and provide insights into network behavior and performance.