Structure Evolution of B2B Enterprise Networks

Abstract

This chapter analyzes the structural dynamics of multilateral business-to-business (B2B) relationships based on game theoretical approach. It focuses on the evolution of network structures initiated by three major forces: a neutral intermediary, a dominant supply chain partner, and an industry consortium. We show the typical enterprise network structures, identify the conditions that cause structure reconfiguration, and demonstrate the change of social welfare in the evolution process. Web-based technologies have changed the landscape of enterprise networks, and the proposed framework will provide an analytical understanding of the endogenous formation and dynamics of enterprise networks in the information era.