So if you just use a hub or a switch how do the hosts find each other?
Are you doubting that it works or are you asking for an explanation of the protocols involved?
If it's the first - try this - set static ip addresses on your DNS-323 and on a PC and then plug the DNS-323 directly into the ethernet port on the PC - no hub, no switch and no router.
Open a command prompt on the PC and ping the DNS-323 at the static address you assigned to it, it will respond - open a web browser and enter the ip address and the admin web page will come up - open explorer and map a drive to the DNS-323 using UNC (Uniform Naming Convention - \\ipaddress\share) syntax and you'll be able to access your files.
Trust me on this - twenty years ago, before Al Gore invented the internet

networks were built with coax cable strung from one PC to the next to the next to the next and so on and so forth, and they all found one another with no hubs, no switches and believe it or not - no routers and no tcp/ip.
Fast forward to today, most people have heard of the internet, many of them have routers, and everything runs over tcp/ip - but you know what - if you're using an ethernet LAN, it still runs over the same basic protocols that Bob Metcalfe invented back in 1973, and a router is not required for two computers on the same LAN to "find" one another.