Risks of Supply Chain Disruption and Market Concentration: Constructing Conceptual Models of Transaction Structures in Supply Chain Networks

Gaining competitive advantage and market share is essential for business continuity and growth. However, under conditions of increased uncertainty (e.g. economic, geopolitical, technological, and environmental risks), the risk of supply chain disruptions also increases. Thus, market concentration and the risk of supply chain disruption are closely related, and how to balance supply chain resilience (information and technology sharing for risk dispersion) and competitiveness (price, quality, and delivery advantages) is an important issue. This study is to construct a conceptual model that captures phenomena such as supply fluctuations (disruptions and delays) and changes in trading relationships (overlaps and concentrations) that occur in supply chain networks (SCNs), and to visualize how supply chain disruption and market concentration affect SCNs by constructing two types of conceptual models: the SCNs disruption model and the SCNs overlap model. Although, it is very important to analyze SCNs with large and complex structures in more detail, this study considers it is also important to construct simple models, and combining them, quickly analysis.