The Nature of Supply Networks

Supply chains are networks. Supply chains are a simplification of what actually happens, and supply networks are much closer to what is real. When two companies engage in business as a buyer and a supplier, they form a buyer-supplier relationship. That is a dyad—two entities linked in a relationship. Yet, triads are the smallest unit where we can begin to observe network dynamics. A common triad in supply networks is the buyer-supplier-supplier relationship. If we extend the supplier-supplier relationship horizontally, we get a supply base to a buying company. If we extend the buyer-supplier relationship vertically, we see an extended supply chain. If we combine the supply bases and extended supply chains, we end up with supply networks. Using the network concepts and theories, we study the structural and behavioral patterns of supply networks. Further, using the theoretical lens of complex adaptive systems, we examine the dynamic and evolutionary patterns of supply networks. By doing so, we consider how to help make supply networks become more resilient and robust.