Table 1 Complexity and centrality... | Emerald Publishing

Table 1

Complexity and centrality constructs in SCM

Construct definition in network science	Meaning in the supply chain context
Vertical complexity: number of “jumps” in the network, denoted by the mean path length between one chosen node and all other nodes	In extant SCM literature, complexity is often tied to the structure of multitier supply chains, relying on the dimensions of vertical complexity (number of tiers) and spatial complexity (geographical dispersion of supply chain actors) (Choi and Hong, 2002). Generally, network complexity is defined as a function of the number of network participants, differentiated between the level and types of their interrelationships (Choi and Krause, 2006)
Horizontal complexity: number of nodes in the network	Horizontal complexity from a supply chain context refers to the number of actors/suppliers on a single supply chain tier (Choi and Hong, 2002). While the number of actors in the network and their interrelations with each other rise, coordination of single tiers becomes more demanding (Tachizawa and Wong, 2015). Particularly an increasing number of suppliers promotes information asymmetries and, thereby, challenges direct governance activities
Network centrality: average number of ties within the network, denoted by the mean node degree	Network centrality from an organizational context refers to the degree to which the power of decision-making is concentrated at a single company in the supply network (Tachizawa and Wong, 2015). Ibarra (1993) described network centrality as a particular source of power. Centrality is supposed to positively affect direct governance mechanisms through decreased information asymmetries, increased controllability and decreased coordination costs (Tachizawa and Wong, 2015)
Density: average ratio of actual ties to potential ties in the network, denoted by the mean of the ratio of the number of edges to the number of possible edges	From an organizational perspective, denser networks require more effort/power to be governed as suppliers interchange critical information more easily and may act opportunistically (Choi and Krause, 2006; Tachizawa and Wong, 2015). In this vein, transaction costs will increase in denser supply networks to protect the focal firm against suppliers' opportunistic behavior (Choi and Krause, 2006)

Construct definition in network science	Meaning in the supply chain context
Vertical complexity: number of “jumps” in the network, denoted by the mean path length between one chosen node and all other nodes	In extant SCM literature, complexity is often tied to the structure of multitier supply chains, relying on the dimensions of vertical complexity (number of tiers) and spatial complexity (geographical dispersion of supply chain actors) (Choi and Hong, 2002). Generally, network complexity is defined as a function of the number of network participants, differentiated between the level and types of their interrelationships (Choi and Krause, 2006)
Horizontal complexity: number of nodes in the network	Horizontal complexity from a supply chain context refers to the number of actors/suppliers on a single supply chain tier (Choi and Hong, 2002). While the number of actors in the network and their interrelations with each other rise, coordination of single tiers becomes more demanding (Tachizawa and Wong, 2015). Particularly an increasing number of suppliers promotes information asymmetries and, thereby, challenges direct governance activities
Network centrality: average number of ties within the network, denoted by the mean node degree	Network centrality from an organizational context refers to the degree to which the power of decision-making is concentrated at a single company in the supply network (Tachizawa and Wong, 2015). Ibarra (1993) described network centrality as a particular source of power. Centrality is supposed to positively affect direct governance mechanisms through decreased information asymmetries, increased controllability and decreased coordination costs (Tachizawa and Wong, 2015)
Density: average ratio of actual ties to potential ties in the network, denoted by the mean of the ratio of the number of edges to the number of possible edges	From an organizational perspective, denser networks require more effort/power to be governed as suppliers interchange critical information more easily and may act opportunistically (Choi and Krause, 2006; Tachizawa and Wong, 2015). In this vein, transaction costs will increase in denser supply networks to protect the focal firm against suppliers' opportunistic behavior (Choi and Krause, 2006)