The emergence of supply network ecosystems: a social network analysis perspective

Abstract

Over the recent years there has been increasing interest in the evolution of supply networks and, given their inherent inter-dependences, some scholars have likened these networks to ‘ecosystems’. This paper explores the role that social network analysis (SNA) might play in exploring the evolution and impact of both positional and structural characteristics of such networks on member strategy and network performance. We adopt a relational model that captures vertical, horizontal and diagonal linkages evident in these networks and capture data on supplier, service, customer, alliance and competitive relations. A variety of SNA techniques are used to investigate the evolution and impact of these relations and consequent structures. We find SNA techniques combined with qualitative analysis a useful mixed approach to supply network analysis. In particular, we find measures of cliques/subgroups and centrality useful as they provide insight into the role networks play in supporting firm and network competitiveness. In this regard, we find that networks are dynamic social processes that influence knowledge creation and ultimately business direction.