Evolution of the Korean Automotive Industry Supply Network: An Exploratory Study Based on SAOM (Stochastic Actor-Oriented Model)*

Abstract

Most studies on the supply network structure have focused on revealing the “stationary’ network structure based on cross-sectional data. However, when the supply network is defined as a complex adaptive system that is a dynamic process, it is particularly important to explore its structure and evolution. Therefore, this study empirically analyzed how and through which micro-mechanisms the traditional vertical structure of the Korean automotive industry supply network is evolving into a horizontal structure. The results confirmed that new firms were continuously entering the Korean automotive industry supply network, and transaction relationships that were not found in the traditional supply chain structure were increasing. Additionally, among the existing suppliers, high-performing suppliers continued to form new transaction relationships while maintaining existing relationships. The significance of this study is as follows. SAOM was applied to the supply network of the Korean automotive industry for the first time, and the existing vertical and linear relationship studies were expanded from a network perspective. Furthermore, unlike the existing supply network-related studies, which were limited to an analysis at a specific point in time, the dynamic evolution of the supply network was identified.