The impact of disclosure of risk information on risk propagation in the industrial symbiosis network

Abstract

The interdependent symbiotic relationship between enterprises may bring potential risks to the stability of the industrial symbiosis network (ISN). In order to reduce the damage caused by further risk propagation to the system, this paper establishes the multiplex network to study the impact of disclosure of risk information on risk propagation. In the multiplex network, we use a small-world network to simulate a social network and propose an evolutionary model with scale-free characteristics to simulate the symbiotic relationships between enterprises. Then we establish a risk propagation model by defining transition rules among various states. Through theoretical analysis using the Microscopic Markov Chain Approach (MMCA), we find that the proportion of disclosed enterprises, the network structure of the ISN, the recovery rate of enterprises, and the degree of symbiotic dependence affect the risk propagation threshold of the ISN. Numerical simulation results show that increasing the disclosure probability of risk information can reduce the scope of risk propagation. Moreover, once the disclosure probability of risk information reaches a certain value, the risk propagation threshold can be increased. Finally, relevant suggestions are put forward: (i) strengthening the information communication between symbiotic enterprises may reduce risks caused by information asymmetry. (ii) In addition to the authenticity and integrity of risk information, it is necessary to prevent risk information from being over-interpreted or exaggerated. (iii) Enterprises should strengthen the ability to recover from risks, appropriately reduce the degree of symbiotic dependence, and enhance risk awareness to reduce the possibility of risk occurrence.

The role of trophic, mutualistic, and competitive interactions in an industrial symbiosis process implementation: an ecological network perspective

“…According to Shan et al ( 2023 ), industrial symbiosis is considered an effective way to achieve efficiency in resource use. Likewise, it allows alleviating the problem of carbon emissions and the possibility of implementing regional development to transform economic models into circular models.…”

“…An important aspect to highlight is that companies that are part of an industrial symbiosis network must not only consider risk factors external to them but also to the set of relationships between the companies of which they are part (Massari and Giannoccaro 2022 ). In this way, the state of the nodes in the network of relationships plays a fundamental role in the way the stability of the network is achieved (Shan et al 2023 ). In industrial symbiosis, networks help firms adequately deal with risks, external factors, and deficiencies in operations that could be limitations in the provision of inputs that may affect production (Dong et al 2022b , a ).…”

“…From the field of knowledge of industrial symbiosis, some lines of work currently receiving great attention can be evident, such as waste management (Yadav and Majumdar 2023 ; Moser and Jauschnik 2023 ; Shi et al 2023 ; Noori et al 2023 ), network (Yazıcı et al 2023 ; Shmeleva et al 2023 ; Yu et al 2023 ; Ratsimandresy and Miemczyk 2023 ; Mallawaarachchi et al 2023 ; Yang et al 2023 ; Wang, et al 2023 ; Shan et al 2023 ), management (Agudo et al 2024 ; Erol et al 2023 ; Harfeldt-Berg and Harfeldt-Berg 2023 ; Bruel and Godina 2023 ; Hariyani and Mishra 2023 ; Xue et al 2023 ), technology adoption (Beaurain et al 2023 ), and circular economy (Bui et al 2023 ; Tsolakis et al 2023 ; Faria et al 2023 ; Liu et al 2023 ).…”