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Managing Market, Hierarchy, and Network: The Jiuda Salt Industries, Ltd., 1917–1937

Published online by Cambridge University Press:  18 February 2015

Kwan Man Bun
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Abstract

As China underwent industrialization during the Republican period, how did companies deal with the problems of expansion, competition, and relationship with the state? Using the concept of network capitalism, this article demythologizes the “enigma” of Chinese network by analyzing the experience of the Jiuda Salt Industries, Ltd. Fan Xudong, the company’s founder, deftly managed his network portfolio for information and other resources. Kith and kin as shareholders, interlocking directorates, and cross-shareholding, as well as hierarchical management and cartels, were utilized to raise capital and manage local markets. Market, hierarchy, and network thus constitute three complementary organization principles in explaining Jiuda’s success.

Type
Articles
Information
Enterprise & Society , Volume 6 , Issue 3: Special Issue: Business History in Modern China , September 2005 , pp. 395 - 418
Copyright
Copyright © The Author(s) 2005. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved.

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