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Hi Bharathi, it is not possible to explain this in a couple of lines.
To make a long story short, this structure helps the orchestration engine instantiate the static processes linked to the instances of executable order components.
When the order is received, typically a recongnition rule is applied and then decomposition starts.
The engine first instantiates the items based on the xquery expression which you find on the orchestration sequence editor.
Then these are linked to the first dimension of order components through the product spec.
There can be any number of dimensions and decomposition rules are applied each time, this corresponds to Orchestration stages.
At the end, there are executable components with a set of items associated to each.
The componentKey gives the decomposition path, in other words adds .componentName for each stage.
OrderItemRef is a reference node, this avoids replicating the whole item in multiple places, so each function just points to the unique ID of the item stored in the DB (order node index).
On the cient or the APIs, though, this appears as if the structure was replicated there.
The entities which participate in decomposition / orchestration are described in the design studio online help, I am not aware of any comprehensive high level description.
Hope this helps.