The application of complex network theory for resilience improvement of knowledge-intensive supply chains

Abstract

With frequent political conflicts and public health emergencies, global supply chains are constantly under risk interference, significantly reducing supply chain resilience (SCR), especially for the knowledge-intensive supply chains (KISCs). To assess and improve the resilience of KISC, this paper uses complex network theory to construct a directed weighted network model suitable for KISC and expresses the SCR as a comprehensive capability that can resist risk and recover from it. Using quantitative indicators plus qualitative assessment to quantify the resilience index and identify the network key nodes. Two resilience improvement paths are proposed for KISCs, improving firms’ development capacity and industrial backup. In the case study, the resilience of the integrated circuit (IC) supply chain is assessed and improved according to real data from the global IC industry. The findings show that (i) The resilience assessment based on the directed weighted network aligns with industrial reality. (ii) Improving firms’ development capability and industrial backup can improve SCR. (iii) Effective improvement of resilience requires targeting key nodes in the supply chain network (SCN). Moreover, the degree of firms’ development capability improvement and industrial backup intensity should be within a specific range.

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“…Security Magazine (2024) report indicates that software supply chain security is ranked as a key priority by 52% of chief information security officers and 70% of developers. However, the growing intricacy of contemporary software supply chains poses substantial hurdles in adequately monitoring and safeguarding each component and dependence (Chen and Wen, 2023). According to research by Chen and Wen (2023), unlike in the past when software was predominantly developed in-house by small teams, modern development practices now involve integrating opensource libraries with proprietary code across extensive development teams.…”

Complex Network-Based Resilience Assessment of the Integrated Circuit Industry Chain

“…The review identifies the key methodological limitations in current models and proposes a conceptual framework that incorporates operational and topological aspects, alongside a new set of resilience metrics, to offer a more realistic representation of supply networks. Jiakuan Chen et al [28] studied the use of complex network theory to construct weighted network models suitable for knowledge-intensive industries to assess and improve industry resilience and development. Donghui Yang et al [29] conducted an in-depth study of the robustness structure of the supply chain and suggested focusing on establishing hub-like connections with upstream and downstream partners.…”

Global Industrial Chain Resilience Research: Theory and Measurement

“…In the measurement of industrial chain resilience, researchers have employed a variety of indicators and methods to comprehensively capture its multidimensional nature. Core capabilities, performance metrics, and topological indices have been applied for evaluating industrial chain resilience across different levels [15][16][17][18]. Furthermore, mathematical models, simulation techniques, and statistical approaches have provided a diverse array of methodologies for studying this topic [19][20][21].…”