Structural investigation of supply networks: A social network analysis approach

TLDR

Supply networks are more accurately represented as interconnected networks rather than linear chains. The study demonstrates using social network analysis to examine the structural characteristics of supply networks. The authors develop a theoretical framework linking social network analysis metrics to supply network constructs and apply it to three automotive supply networks, analyzing both material flow and contractual relationships. The comparison shows that the framework supplements and complements case‑based analysis of supply networks.

Abstract

Abstract A system of interconnected buyers and suppliers is better modeled as a network than as a linear chain. In this paper we demonstrate how to use social network analysis to investigate the structural characteristics of supply networks. Our theoretical framework relates key social network analysis metrics to supply network constructs. We apply this framework to the three automotive supply networks reported in Choi and Hong (2002) . Each of the supply networks is analyzed in terms of both materials flow and contractual relationships. We compare the social network analysis results with the case‐based interpretations in Choi and Hong (2002) and conclude that our framework can both supplement and complement case‐based analysis of supply networks.