Competitive pressure and environmental change have driven companies to continuously improve their internal operations and capabilities. As the trend changed from competition among individual companies to network competition, engaging parties have become increasingly interested in supply chain or network. As a type of supply network, Dongdaemun supply network has recently attracted public attention and is worthy of notice.
Some researchers have examined Dongdaemun market from various perspectives and tried to explain the reason or determinants of its robustness. However, most of the efforts have been limited to describe the characteristics of the market because Dongdaemun complex adaptive system is too complex in nature to allow simple comprehension or modeling.
Based on literature review and case study, we established a comprehensive framework for the Dongdaemun complex adaptive system. From the emergence perspective, we could explain the underlying factors that are critical for positive feedback cycle in the Dongdaemun supply network.
Founded on the suggested framework, we carried out an agent-based simulation to examine the fashion diffusion process. We found that Dongdaemun complex adaptive system is constantly adapting to the environmental change. In a course of such adaptation process, imitation among players is critical. And network topology on which players interact is also important.