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The structure of global inter-firm networks

Author

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  • Mizuno, Takayuki
  • Ohnishi, Takaaki
  • Watanabe, Tsutomu

Abstract

We investigate the structure of global inter-firm relationships using a unique dataset containing information on customers, suppliers, licensors, licensees and strategic alliances for each of 412,814 major incorporated non-financial firms in the world. We focus on three different networks: customer-supplier network, licensee-licensor network, and strategic alliance network. In/out-degree distribution of these networks follows a Pareto distribution with an exponent of 1.5. The shortest path length on the networks for any pair of firms is around six links. The networks have a scale-free property.

Suggested Citation

  • Mizuno, Takayuki & Ohnishi, Takaaki & Watanabe, Tsutomu, 2016. "The structure of global inter-firm networks," HIT-REFINED Working Paper Series 37, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:remfce:37
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/27735/wp037.pdf
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    References listed on IDEAS

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    3. Souma, Wataru & Fujiwara, Yoshi & Aoyama, Hideaki, 2003. "Complex networks and economics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 324(1), pages 396-401.
    4. Saito, Yukiko Umeno & Watanabe, Tsutomu & Iwamura, Mitsuru, 2007. "Do larger firms have more interfirm relationships?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 383(1), pages 158-163.
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    Cited by:

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    Keywords

    Inter-firm relationship; Scale-free network;

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