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University of the West of Scotland


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Business School

Simulation Model for Industrial Networks

Dr Rob Dekkers

rob.dekkers@uws.ac.uk

This project aims to developing a simulation that will make it possible to understand the dynamics of industrial networks. Previous research into industrial networks focus on the description of contractual aspects and social-dynamic of inter- organisational relationships. They prove insufficient to address the characteristics of networks: collaboration, decentralisation of decision-making and inter-organisational integration, which calls for approaches that are more dynamic.

Models for co-evolution, originating in evolutionary biology and especially those based on game theories, might prove fertile ground for developing more adequate collaboration models for industrial networks. Part of the literature views co-evolution from the perspective of the monolithic company and arrives at inferences that fit circumstances that are more static.

The decentralisation of decision-making entails that partners in industrial networks behave like autonomous agents that mutually interact and requires dynamic descriptions. The interaction in networks will benefit from insight in game-theoretic applications to understand the underlying patterns.

Game-theoretic models that incorporate private and common benefits and that make it possible to analyse the instability of networks should lead to new, grounded theory. Those models cover then the internal development of traits by agents, their belonging strategy, the connectivity (including the inter-organisational integration) and the dynamics of the environment. So far, these models are found in separate strands of research and need to be synthesised into new insight that will advance understanding of how industrial networks operate. The simulation model will be used to compare different networks.