Exploring Efficient Network Structure of Interfirm Knowledge Sharing From Perspective of Optimal Node Degree
Background: Network structure is a critical issue for efficient interfirm knowledge sharing. The optimal node degree turns out to be decisive because it is generally regarded as a core proxy of network structural characteristics. This paper is to examine what is the optimal node degree for an efficient network structure. Methods: Based on an interaction rule combining the barter rule and the gift rule, we first describe and then build a knowledge diffusion process. Then using four factors, namely network size, network randomness, knowledge endowment of network, and knowledge stock of each firm, we examine the factors that influence the optimal node degree for efficient knowledge sharing. Results: The simulation results show that the optimal node degree can be determined along the change in outer factors. Furthermore, changing the network randomness and network size has little impact on node degree. Instead, knowledge endowment of network and knowledge stock of each firm both have significant impact on the node degree. Conclusion: We find that an optimal node degree can always be found in any condition, which confirms the existence of a balanced state. Thus, policymakers can determine the appropriate number of links to avoid redundancy and thus reduce cost in interfirm networks. We also examine how different factors influence the size of the optimal node degree, and as a result, policymakers can set an appropriate number of links under different situations.