Title: Hidden structure and value network: shedding light on position assessment

Authors: Elina Karttunen; Mika Immonen; Mikko Pynnönen; Jouni Koivuniemi

Addresses: LUT School of Business and Management, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland ' LUT School of Business and Management, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland ' LUT School of Business and Management, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland ' LUT School of Business and Management, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland

Abstract: This study focuses on hierarchical structures of value networks of service systems. But how can the central and influential network positions be found in the value network? The position of actors is extracted using the hidden structure method (HSM) and centrality metrics of social network analysis (SNA). Both analyses apply adjacency matrix data that reveal direct dependencies of actors in a value network. We measured indegree, outdegree, betweenness, and closeness centralities to each actor to compare SNA and HSM results. HSM can reveal the actors who conduct the most significant activities, as well as more peripheral actors who have a strong influence on core actors. Thus, HSM does not neglect the hierarchy between actors. Our methodological contribution suggests that in parallel with widely used SNA centrality measures, researchers should leverage HSM to define influential actors. Two pharmacy concepts in Finland provide the empirical research context.

Keywords: value network; network structure; network position; actor; role; hidden structure method; HSM; social network analysis; SNA; pharmaceutical network; centrality; adjacency matrix.

DOI: 10.1504/IJSOM.2020.106790

International Journal of Services and Operations Management, 2020 Vol.36 No.1, pp.1 - 19

Received: 19 May 2017
Accepted: 24 Jan 2018
Published online: 21 Apr 2020 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article