Organizational survival in cooperation networks: The case of automobile manufacturing

Abstract

We propose a Multi-Agent framework to analyze the dynamics of organizational survival in cooperation networks. Firms can decide to cooperate horizontally (in the same market) or vertically with other firms that belong to the supply chain. Cooperation decisions are based on economic variables. We have defined a variant of the density dependence model to set up the dynamics of the survival in the simulation. To validate our model, we have used empirical outputs obtained in previous studies from the automobile manufacturing sector. We have observed that firms and networks proliferate in the regions with lower marginal costs, but new networks keep appearing and disappearing in regions with higher marginal costs.