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The impact of firm heterogeneity and awareness in modeling risk propagation on multiplex networks

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  • Liu, Hui
  • Yang, Naiding
  • Yang, Zhao
  • Lin, Jianhong
  • Zhang, Yanlu

Abstract

Growing interest has emerged to understand the coupled awareness-epidemic dynamics in multiplex network. However, most previous studies usually assume that all the infected nodes have the same influence on the susceptible neighbors, without considering node’s heterogeneity. In this paper, with the similarity between epidemic spreading and risk propagation, we apply the UAU-SIS model to investigate the interplay between awareness and risk propagation in R&D networks considering firms’ heterogeneity. Here, the risk triggering probabilities are heterogeneous and depend on two factors: cooperation intensity and local risk prevalence. The results reveal that the cooperation intensity can increase the risk propagation prevalence and decrease the risk propagation threshold, while the local risk prevalence can only increase the risk propagation prevalence. Moreover, we find that the risk propagation threshold undergoes an abrupt transition with a certain point of the local awareness ratio (the global awareness ratio) ignoring the global awareness (the local awareness ratio), which includes two-stage effects on risk propagation threshold. Furthermore, threshold lies in three different areas when considering both the global and local awareness. These results could provide a basis for managerial professionals to improve the robustness of interdependent R&D networks under risk propagation by taking effective measures.

Suggested Citation

  • Liu, Hui & Yang, Naiding & Yang, Zhao & Lin, Jianhong & Zhang, Yanlu, 2020. "The impact of firm heterogeneity and awareness in modeling risk propagation on multiplex networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 539(C).
    • Handle: RePEc:eee:phsmap:v:539:y:2020:i:c:s0378437119316553
    DOI: 10.1016/j.physa.2019.122919
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    References listed on IDEAS

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    2. Yang, Qing & Zou, Xingqi & Ye, Yunting & Yao, Tao, 2022. "Evaluating the criticality of the product development project portfolio network from the perspective of risk propagation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 593(C).
    3. Li, Ruimeng & Yang, Naiding & Zhang, Yanlu & Liu, Hui & Zhang, Mingzhen, 2021. "Impacts of module–module aligned patterns on risk cascading propagation in complex product development (CPD) interdependent networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 564(C).
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    5. Li, Ruimeng & Yang, Naiding & Yi, Hao & Jin, Na, 2023. "The robustness of complex product development projects under design change risk propagation with gray attack information," Reliability Engineering and System Safety, Elsevier, vol. 235(C).
    6. Ping Yu & Peiwen Wang & Zhiping Wang & Jia Wang, 2022. "Supply Chain Risk Diffusion Model Considering Multi-Factor Influences under Hypernetwork Vision," Sustainability, MDPI, vol. 14(14), pages 1-15, July.

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