Honesty, Diligence, and Skill: Risk Sharing and Specialization in the Kiryu Silk Weaving Cluster, Japan
Industrial clusters and factory industries co-develop during industrialization and the relational contracts between manufacturers and subcontractors are the organizational basis of clusters. We predict that relational transactions between manufacturers and subcontractors and cooperative action between manufacturers within a cluster help motivate riskaverse premium subcontractors by reducing risk, not only potentially punish cheaters. We study Kiryu, a kimono weaving cluster that expanded from the late 19th century along with new synthetic dyeing techniques. We show that premium subcontracting weavers were allowed long-term relational contracts and specialization, which induced already honest weavers to be diligent and to acquire skills.
|Date of creation:||23 Dec 2013|
|Date of revision:||03 Jun 2014|
|Contact details of provider:|| Postal: |
Phone: (03)3812-2111 ext 4904
Web page: http://www.iss.u-tokyo.ac.jp/publishments/dpf/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yamamura, Eiji, 2009.
"Dynamics of social trust and human capital in the learning process: The case of the Japan garment cluster in the period 1968-2005,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 72(1), pages 377-389, October.
- yamamura, eiji, 2008. "Dynamics of social trust and human capital in the learning process: The case of the Japan garment cluster in the period 1968-2005," MPRA Paper 10251, University Library of Munich, Germany.
- Tetsuji Okazaki & Masaki Nakabayashi, 2004. ""History of Production Organizations"(in Japanese)," CIRJE J-Series CIRJE-J-120, CIRJE, Faculty of Economics, University of Tokyo.
- Luigi Guiso & Fabiano Schivardi, 2007. "Spillovers in Industrial Districts," Economic Journal, Royal Economic Society, vol. 117(516), pages 68-93, 01.
- Vu Hoang Nam & Tetsushi Sonobe & Keijiro Otsuka, 2010. "An Inquiry into the Development Process of Village Industries: The Case of a Knitwear Cluster in Northern Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 312-330.
- Gebreeyesus, Mulu & Mohnen, Pierre, 2011.
"Innovation performance and embeddedness in networks: evidence from the Ethiopian footwear cluster,"
MERIT Working Papers
043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Gebreeyesus, Mulu & Mohnen, Pierre, 2013. "Innovation Performance and Embeddedness in Networks: Evidence from the Ethiopian Footwear Cluster," World Development, Elsevier, vol. 41(C), pages 302-316.
When requesting a correction, please mention this item's handle: RePEc:itk:issdps:f166. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.