INSEAD Working Paper 2011/81/TOM revised version of 2011/06/TOM
Complex engineered systems tend to have architectures in which a small subset of components exhibits a disproportional number of linkages. Such components are known as hubs. This paper examines the degree distribution of systems to identify the presence of hubs and quantify the fraction of hub components. We examine how the presence and fraction of hubs relate to a system’s quality. We provide empirical evidence that the presence of hubs in a system’s architecture is associated with a low number of defects. Furthermore, we show that complex engineered systems may have an optimal fraction of hub components with respect to system quality. Our results suggest that architects and managers aiming to improve the quality of complex system designs must proactively identify and manage the use of hubs. Our paper provides a data-driven approach for identifying appropriate target levels of hub usage.