Table 3

Cross-year analysis of network characteristics

19962005201520202023
Node centrality
  • -

    The OEM’s degree centrality increases from 1996 to 2023 (3–22) and closeness centrality decreases (0.111–0.031); betweenness remains the highest in the network (0.6)

  • -

    Tier 1 suppliers’ average degree centrality does not change (∼2.33) but closeness centrality (0.089–0.018) and betweenness centrality decrease strongly (0.2–0.01) from 1996 to 2023

  • -

    The semiconductor suppliers’ highest degree centrality increases (SS3, from 2 in 1996 to 14 in 2023), but closeness centrality decreases considerably (0.077–0.024); the highest betweenness centrality decreases (0.067–0.17) while many semiconductor suppliers have betweenness centrality close to 0

 
  • -

    Lack of connections between OEM and semiconductor suppliers

  • -

    Tier 1 suppliers have central position to control and connect upstream and downstream

  • -

    OEM’s decision to use one semiconductor family across its ECUs enables SS3’s growing degree centrality starting from 2005

  • -

    Stronger links are created with specific semiconductor suppliers (OEM1 - SS3)

  • -

    Degree centrality of OEM and semiconductor suppliers increase due to new connections with Tier 1 suppliers

  • -

    Emergence of new, disconnected nodes (ADs, EMs)

  • -

    A gap is created in linking innovation needs and possibilities between OEMs and semiconductor suppliers

  • -

    Tier 1 suppliers cannot coordinate supply and demand for semiconductors due to demand fluctuations and semiconductor shortages

  • -

    OEMs make direct connections with semiconductor suppliers connections aiming to secure supply by increasing information sharing

  • -

    Information flows are still restricted by confidentiality terms of contracts with Tier 1 suppliers

Network complexity
  • -

    Network size increases from 7 to 28, and density decreases from 0.33 to 0.14

  • -

    Continuous network growth due to the need for new ECUs

  • -

    The entrance of new Tier 1 suppliers outweighs mergers and acquisitions between Tier 1 suppliers

  • -

    Addition of new, increasingly disconnected nodes

  • -

    During all years except 2023, all connections passed through Tier 1 suppliers

  • -

    No cooperation between nodes of the same type: each ECU has one responsible Tier 1 supplier, which is connected to other nodes needed for that ECU

 
  • -

    Small number of ECUs in vehicles

  • -

    Few Tier 1 suppliers are able to meet ECU vibration test requirements

  • -

    Monopoly-like position of those few Tier 1 suppliers

  • -

    High network density

  • -

    Entrance of Tier 1 suppliers previously specialized in mechanical parts

  • -

    First appearance of ADs and EMS companies in the network

  • -

    The network achieves its peak size with the entrance of new nodes in all node types

  • -

    Network density slightly increases due to new connections across the network

Network centralization
  • -

    Degree centralization of the network increases from 0.23 to 0.72

  • -

    Unique information paths for each ECU makes the Tier 1 supplier the central actor in each ECU’s supply chain

  • -

    Increasing centralization represents the high centrality of the OEM, while in reality, power is centered around Tier 1 suppliers

 OEMs’ active decision not to design ECUs but rather rely on Tier 1 suppliers for that taskLack of resources and semiconductor knowledge stopped OEMs from involvement with semiconductor suppliers, despite growing value of semiconductors in vehicles

Source(s): Created by the authors

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