Abstract
Regional economic resilience is the ability of the regional economy to hold out when there is an economic shock. Interconnectedness between actors in a regional economy is a crucial factor in regional economic resilience, especially for the adaptive resilience. However, extant studies have analyzed the overall regional resilience competencies in terms of advanced technology, productivity input factors (human and physical capital), and agglomeration economies. This study aims to operationalize the concept of the regional economy’s network characteristics and empirically analyze the relationship between network characteristics and the resilience of regional economy. We posited the hypotheses on the relationship between the network characteristics of regional industrial ecosystems and resilience. We use the automobile parts yearbook of the South Korea Automobile Association from 1997 to 2019. We built automobile industry transaction data by digitalizing the paper-based records. It operationalized the concept of weak tie using modularity and skewness. As a result, an economic ecosystem with weak ties showed better performance in economic resilience. This study argues that the regional industrial ecosystem is an important, but neglected, factor for the sustainable development of the regional economy.
![](http://media.springernature.com/m312/springer-static/image/art%3A10.1007%2Fs00168-023-01218-1/MediaObjects/168_2023_1218_Fig1_HTML.png)
![](http://media.springernature.com/m312/springer-static/image/art%3A10.1007%2Fs00168-023-01218-1/MediaObjects/168_2023_1218_Fig2_HTML.png)
Source: Visualization (Farahani et al. 2019), Algorithm (Blondel, Guillaume, Lambiotte, & Lefebvre)
![](http://media.springernature.com/m312/springer-static/image/art%3A10.1007%2Fs00168-023-01218-1/MediaObjects/168_2023_1218_Fig3_HTML.png)
![](http://media.springernature.com/m312/springer-static/image/art%3A10.1007%2Fs00168-023-01218-1/MediaObjects/168_2023_1218_Fig4_HTML.png)
![](http://media.springernature.com/m312/springer-static/image/art%3A10.1007%2Fs00168-023-01218-1/MediaObjects/168_2023_1218_Fig5_HTML.png)
![](http://media.springernature.com/m312/springer-static/image/art%3A10.1007%2Fs00168-023-01218-1/MediaObjects/168_2023_1218_Fig6_HTML.png)
![](http://media.springernature.com/m312/springer-static/image/art%3A10.1007%2Fs00168-023-01218-1/MediaObjects/168_2023_1218_Fig7_HTML.png)
![](http://media.springernature.com/m312/springer-static/image/art%3A10.1007%2Fs00168-023-01218-1/MediaObjects/168_2023_1218_Fig8_HTML.png)
![](http://media.springernature.com/m312/springer-static/image/art%3A10.1007%2Fs00168-023-01218-1/MediaObjects/168_2023_1218_Fig9_HTML.png)
Similar content being viewed by others
References
Allen CR, Angeler DG, Garmestani AS, Gunderson LH, Holling CS (2014) Panarchy: theory and application. Ecosystems 17(4):578–589. https://doi.org/10.1007/s10021-013-9744-2
Angulo AM, Mur J, Trívez FJ (2018) Measuring resilience to economic shocks: an application to Spain. Ann Reg Sci 60:349–373. https://doi.org/10.1007/s00168-017-0815-8
Barabasi A, Frangos J (2002) Linked: The new science of networks science of networks. Basic Books, New York. Retrieved from http://ebookcentral.proquest.com/lib/univofseoul/detail.action?docID=679705
Blondel VD, Guillaume JL, LambiotteLefebvre RE (2008) Fast unfolding of communities in large networks. J Stat Mech Theory Exp 10:P10008
Boschma R (2015) Towards an evolutionary perspective on regional resilience. Reg Stud 49(5):733–751. https://doi.org/10.1080/00343404.2014.959481
Brown DW, Konrad AM (2001) Granovetter was right: the importance of weak ties to a contemporary job search. Group Organ Manag 26(4):434–462
Burt RS (2004) Structural holes and good ideas. Am J Sociol 110(2):349–399
Cainelli G, Ganau R, Modica M (2019) Does related variety affect regional resilience? New evidence from Italy. Ann Reg Sci 62:657–680. https://doi.org/10.1007/s00168-019-00911-4
Capello R, Caragliu A, Fratesi U (2015) Spatial heterogeneity in the costs of the economic crisis in Europe: are cities sources of regional resilience? J Econ Geogr 15(5):951–972
Cho MK, Kang MG (2020) The dynamic process of regional industrial ecosystem: focused on automobile business network. J Korean Region Develop Assoc 32(4):43–65. Retrieved from http://www.dbpia.co.kr/journal/articleDetail?nodeId=NODE10496266
Christopherson S, Michie J, Tyler P (2010) Regional resilience: theoretical and empirical perspectives. Camb J Reg Econ Soc 3(1):3–10. https://doi.org/10.1093/cjres/rsq004
Clauset A, Newman ME, Moore C (2004) Finding community structure in very large networks. Phys Rev E 70(6):066111
Coase RH (1960) The problem of social cost. J Law Econ 3:1–44. https://doi.org/10.1057/9780230523210_6
Coleman JS (1988) Social capital in the creation of human capital’. Am J Sociol 94:95–120
Crespo J, Suire R, Vicente J (2014) Lock-in or lock-out? How structural properties of knowledge networks affect regional resilience. J Econ Geogr 14(1):199–219. https://doi.org/10.1093/jeg/lbt006
Crespo J, Suire R, Vicente J (2016) Network structural properties for cluster long-run dynamics: evidence from collaborative R&D networks in the European mobile phone industry. Ind Corp Change 25(2):261–282. https://doi.org/10.1093/icc/dtv032
Di Caro P (2018) Fratesi U (2018) Regional determinants of economic resilience. Ann Reg Sci 60:235–240. https://doi.org/10.1007/s00168-017-0858-x
Farahani FV, Karwowski W, Lighthall NR (2019) Application of graph theory for identifying connectivity patterns in human brain networks: a systematic review. Front Neurosci 13:585. https://doi.org/10.3389/fnins.2019.00585
Fingleton B, Garretsen H, Martin R (2012) Recessionary shocks and regional employment: evidence on the resilience of UK regions. J Reg Sci 52(1):109–133. https://doi.org/10.1111/j.1467-9787.2011.00755.x
Granovetter MS (1973) The strength of weak ties. Am J Sociol 78(6):1360–1380
Hassink, R., Isaksen, A., & Trippl, M. (2019). Towards a comprehensive understanding of new regional industrial path development. Region Stud
Holling CS (2001) Understanding the complexity of economic, ecological, and social systems. Ecosystems 4(5):390–405. https://doi.org/10.1007/s10021-001-0101-5
Holling CS, Gunderson LH, Peterson GD (2002) Panarchy: Understanding transformations in human and natural systems. Island Press, Washington DC
Hong SH, Ahn HK, Ha SJ (2016) Measuring regional economic resilience and policy implications. KRIHS Research Reports, pp 12–31
Iansiti M, Levien R (2004) Strategy as ecology. Harv Bus Rev 82(3):68–78
Jung HJ (2016) Economic crisis and economic resilience: an empirical study. Korea Local Admin Rev 30(4):255–288
Katz B, Wagner J (2014) The rise of urban innovation districts. https://hbr.org/2014/11/the-rise-of-urban-innovation-districts
KEIS (2018) Korea employment information service. https://survey.keis.or.kr
Kim A, Lim J, Colletta A (2022) How regional economic structure matters in the era of COVID-19: resilience capacity of U.S. states. Ann Reg Sci (2022). https://doi.org/10.1007/s00168-022-01134-w
Kim WB, Shin HW (2013) Economic crisis and regional resilience in Korea. The Korea Spatial Planning Review 3–21. Retrieved from http://www.dbpia.co.kr/journal/articleDetail?nodeId=NODE02341029
Kim YS (2012) Characteristics of Korea’s cluster policy and evolution to the new theory of regional industrial ecosystem. J Korean Region Sci 28(4):23–43
Lambiotte R, Delvenne J, Barahona M (2008) Laplacian dynamics and multiscale modular structure in networks. ar**v Preprint ar**v:0812.1770
Martin R (2011) Regional economic resilience, hysteresis and recessionary shocks. J Econ Geogr 12(1):1–32. https://doi.org/10.1093/jeg/lbr019
Martin R, Sunley P (2011) Conceptualizing cluster evolution: beyond the life cycle model? Reg Stud 45(10):1299–1318. https://doi.org/10.1080/00343404.2011.622263
Martin R, Sunley P, Gardiner B, Tyler P (2016) How regions react to recessions: resilience and the role of economic structure. Reg Stud 50(4):561–585
Martin R (2010) Roepke lecture in economic geography—rethinking regional path dependence: beyond lock-in to evolution. Econ Geogr 86(1):1–27
Moore JF (1993) Predators and prey: a new ecology of competition. Harv Bus Rev 71(3):75–86
Moore JF (2016) The death of competition: Leadership and strategy in the age of business ecosystems. HarperCollins
Mulas V, Minges M, Appelebaum H (2015) Boosting tech innovation ecosystems in cities: a framework for growth and sustainability of urban tech innovation ecosystems. World Bank 11(1–2):98–125
Nahm KB (2016) The end of ‘selection and concentration’: Towards a new post-cluster regional industry policy. J Econ Geogr Soc Korea 19(4):764–781
Oh SW, Jung HJ, Lim CY (2020) Assessment and analysis of regional business ecosystems through business ecosystem measurement model: Focused on employment crisis regions. KSOI. 15(4): 273–306. https://doi.org/10.46251/INNOS.2020.11.15.4.273
Park SY, Seo YW (2018) Measuring node-level metrics in supply chain network using social network analysis (SNA) approach. Electronic Trade Institute 16(1):43–67. http://www.dbpia.co.kr/journal/articleDetail?nodeId=NODE09002067
Porfirio LL, Newth D, Finnigan JJ, Cai Y (2018) Economic shifts in agricultural production and trade due to climate change. Palgrave Commun 4(1):111. https://doi.org/10.1057/s41599-018-0164-y
Porter ME (2000) Location, competition, and economic development: local clusters in a global economy. Econ Dev Q 14(1):15–34
Rost K (2011) The strength of strong ties in the creation of innovation. Res Policy 40(4):588–604. https://doi.org/10.1016/j.respol.2010.12.001
Scott J, Carrington PJ (2011) The SAGE handbook of social network analysis. SAGE publications.
Simonen J, Herala J, Svento R (2020) Creative destruction and creative resilience: restructuring of the Nokia dominated high-tech sector in the Oulu region. Reg Sci Policy Pract 12(5):931–953. https://doi.org/10.1111/rsp3.12267
Tomlinson PR, Fai FM (2016) The impact of deep vertical supply chain relationships upon focal-firm innovation performance. R D Manag 46(S1):277–290. https://doi.org/10.1111/radm.12181
Acknowledgments
This work was supported by the Basic Study and Interdisciplinary R&D Foundation Fund of the University of Seoul (2019).
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
The authors have no conflict of interests to declare.
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Cho, M., Kang, M. Weak ties and adaptive resilience of regional economy: evidence from networks in the South Korean automobile industry. Ann Reg Sci 72, 735–755 (2024). https://doi.org/10.1007/s00168-023-01218-1
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00168-023-01218-1