Cross-year analysis of network characteristics
| 1996 | 2005 | 2015 | 2020 | 2023 | |
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| Node centrality |
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| Network complexity |
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| Network centralization |
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| OEMs’ active decision not to design ECUs but rather rely on Tier 1 suppliers for that task | – | Lack of resources and semiconductor knowledge stopped OEMs from involvement with semiconductor suppliers, despite growing value of semiconductors in vehicles | – | – | |
| 1996 | 2005 | 2015 | 2020 | 2023 | |
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| 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 task | – | Lack 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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