Measuring complementarity in network design using structural equation modeling (SEM) technique with LISREL software

The notion of modularity has been given much attention in network industry because the rapid changes of technology and customer preferences require flexible network architecture. However, the effectiveness of modular design may be limited by the loss of complementarity in network design. The goal of this study is to measure the effects of complementarity in network design. A model is developed to support how the network-based services interact the design of networks with complementary components under certainty. Preliminary results showed that there exists a complementarity between network components.