Topological structure and COVID-19 related risk propagation in TFT-LCD supply networks

ABSTRACT

Thin-film-transistor liquid-crystal displays (TFT-LCDs) have gained popularity due to their widespread use in the production of televisions, laptops, and iPads. TFT-LCD firms' activities that build relationships with suppliers and customers contribute to the emergence of supply networks. A firm's ability to identify risks, however, is complicated, as TFT-LCD supply networks are becoming increasingly global, complex, and interconnected. The extant research on the topological structure of TFT-LCD supply networks is limited, and the risks identified rely on untested assumptions about the topological structure of such networks. To fill these gaps, this study examines the topological structure and COVID-19 related risk propagation in TFT-LCD supply networks from a dynamic perspective. First, the evolution of the topological structure of TFT-LCD supply networks from 2015 to 2020 is explored by constructing a weighted and undirected supply network. Second, the hidden risky sources in TFT-LCD supply networks are revealed by the proposed risk propagation model. The results show that TFT-LCD supply networks are characterised by a ‘hub and spoke' feature and an explicit shift from geographical to global cooperation. Additionally, a ‘robust-yet-fragile' configuration in these supply networks is uncovered, and the hidden risky sources in the main TFT-LCD manufacturers and suppliers and in interfirm cooperations are revealed. These findings will help managers reduce the vulnerability of TFT-LCD supply networks to disruptions and construct more robust and resilient networks.