Abstract
This chapter focuses on the question of the role of merchant groups in creating systems to control product quality in the context of international trade networks and early industrialization. It first describes the trade networks in the Shandong silk pongee industry from 1900 to 1930. Then it depicts the initiatives taken by merchant association networks with regard to quality control, analyzing the identity of merchants in different positions of this industry. Last, this chapter examines whether the regional associations had the ability to break through the limitations to cooperate with each other. We find that the stronger the duality of the market and the more segmented the spatial market, the stronger the incentives are for individuals in the market to construct associations and association-based networks to complement the private networks based on the differential mode of association for gaining scarce resources. However, the effectiveness of this kind of association network for quality control needs to be reinforced by other elements, such as the strong ties that come from sharing a common native-place.
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Notes
- 1.
Merchants in China used different terms for their associations, including hanghui, gonghui, gongsuo, and it is difficult to find a single English term that covers all of these groups. As to the terminology and research situation, please see Moll–Murata (2008). In this chapter, gonghui and gongsuo are all expressed by the term “association” rather than “guild”. “Guild” is a term that has its historical roots in Western studies. I believe that before a new term is created based on the research, the original designations should be respected.
- 2.
- 3.
Mukden refers to Liaoning Province.
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Zhang, W. (2017). Merchant Association Networks and Product Quality Control: A Case Study of the Silk Pongee Industry in Shandong. In: Furuta, K., Grove, L. (eds) Imitation, Counterfeiting and the Quality of Goods in Modern Asian History. Studies in Economic History. Springer, Singapore. https://doi.org/10.1007/978-981-10-3752-8_6
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