Cascading failure resilience of dual-layer supply chain networks under enterprise competition with incomplete information

Cascading failures are a critical factor affecting the operation of supply chain systems and have received widespread attention. In real-world cases, when an enterprise fails, resources are not evenly distributed to nearby similar enterprises. Instead, they are indirectly allocated through adjustments based on the competition and cooperation among enterprises. Moreover, enterprises often withhold complete information during competition in order to gain more benefits. These factors all influence cascading failures in supply chains. Therefore, we investigate the resilience of cascading failures in dual-layer supply chain networks under enterprise competition with incomplete information. We propose a supply-sales dual-layer network model that takes into account product similarity and enterprise competitiveness. Based on this model, we develop a cascading failure mechanism that includes node competition, replacement, and indirect neighboring load redistribution. Additionally, we incorporate the concept of enterprise information transparency to align with real-world supply chains. Experimental results indicate that (1) increased enterprise transparency can enhance the network’s resilience to cascading failures; (2) for suppliers, focusing on the quality rather than the quantity of cooperative sales enterprises is more critical for resisting cascading failures; (3) compared to the sales network, attacks on the supply network can result in a larger scale of cascading failures.