Assortativity and mixing patterns in international supply chain networks

Mahendra Piraveenan, Upul Senanayake, Petr Matous, Yasuyuki Todo

    Research output: Contribution to journalArticle

    Abstract

    As economic globalisation increases, inclination toward domestic protectionism is also increasing in many countries of the world. To improve the productivity and the resilience of national economies, it is important to understand the drivers and the barriers of the internatiolisation of economic activities. While internatiolisation of individual economic actors is difficult to explain using traditional theories, aggregate patterns may be explained to some extent. We take a network-centric perspective to describe the extent of corporate internatiolisation in different countries. Based on Newman’s assortativity coefficient, we design a range of assortativity metrics which are appropriate in the firm network context. Using these, we quantify companies’ appetite for internatiolisation in relation to the internatiolisation of their partners. We use the Factset Revere dataset, which is provided by FactSet Research Systems Inc., that captures global supply chain relationships between companies. We identify countries where the level of internationalisation is relatively high or relatively low, and we show that subtle differences in the assortativity metrics used change the ranking of countries significantly in terms of the assortativity correlation, highlighting that companies in different countries are prone to different types of internationalisation. Overall, we demonstrate that firms from most countries in the dataset studied have a slight preference to make supply chain relationships with other firms which have undergone a similar level of internationalisation, and other firms from their own country. The implications of our results are important for countries to understand the evolution of international relationships in their corporate environments, and how they compare to other nations in the world in this regard.

    Original languageEnglish
    Article number023124
    JournalChaos
    Volume29
    Issue number2
    DOIs
    Publication statusPublished - 2019 Feb 1

    Fingerprint

    Internationalization
    Supply Chain
    Supply chains
    economics
    Economics
    Metric
    resilience
    Industry
    Globalization
    ranking
    Resilience
    Inclination
    economy
    productivity
    Productivity
    inclination
    Driver
    Ranking
    Quantify
    Coefficient

    ASJC Scopus subject areas

    • Statistical and Nonlinear Physics
    • Mathematical Physics
    • Physics and Astronomy(all)
    • Applied Mathematics

    Cite this

    Assortativity and mixing patterns in international supply chain networks. / Piraveenan, Mahendra; Senanayake, Upul; Matous, Petr; Todo, Yasuyuki.

    In: Chaos, Vol. 29, No. 2, 023124, 01.02.2019.

    Research output: Contribution to journalArticle

    Piraveenan, Mahendra ; Senanayake, Upul ; Matous, Petr ; Todo, Yasuyuki. / Assortativity and mixing patterns in international supply chain networks. In: Chaos. 2019 ; Vol. 29, No. 2.
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