Proposal preview

Centennial Enterprises as Sources of Innovation in Emerging Economies

Many less-developed countries and emerging economies have long-established enterprises. They were often founded at times when countries were colonies or had semi-colonial status. They have grown through the twists and turn caused by political upheaval related to national independence and post-independence experiments with nationalist, inward-looking economic policies. Ownership of companies may have changed, as some were nationalised, while others continued as privately owned ventures. Either way, there many examples of centennial enterprises that on the basis of growth in domestic markets are now competitive international companies. Many of these enterprises were in the past important conduits for economic exchanges between the Western and less-developed countries. They were also conduits for the absorption, adaptation and further development of technology, and therefore important contributors to economic growth in emerging economies. Two well-known prominent examples of such centennial enterprises are the Ayala and Tata conglomerate enterprises in respectively the Philippines and India.

However, in all countries there were many smaller enterprises that survived the times in the same way and that performed a similar role in economic development. In China, for example, during the late Qing Dynasty and the Republic of China, a generation of modern enterprises was established in the following ways. (a) Introduction and learning of western technology and management, such as the establishments as part of the ‘Westernization Movement’. (b) Sino-Western cooperation.International co-operated modern enterprises involving tie-ups with foreign firms. (c) Foreign direct investment by foreign enterprises in China. (d) Foreign firms engaging intermediary agents in various ways, who subsequently transformed away from intermediary trade of the compradors. Each type of business evolved in China before 1949 and engaged multi-national companies in some way.

For example, the China Merchants Group (Class a) was established in 1874 as a state-owned enterprise, and now a company in the Fortune 500 list. Hai-Ho Conservancy Commission (Class b) was established in 1897. Its board of directors, general commission and the foreign chief engineers were appointed by both sides of Chinese and foreign governments. In 1949, it was reformed from a public welfare corporation to a state-owned enterprise. After many difficult reformations and innovations, it gradually has global business from the east to the west. HSBC, Jardine Matheson, AIG (Class c) are that were built by foreigners in prewar China, experienced a rapid development, and finally became multi-national companies with headquarters in Hong Kong or Shanghai. AIG was a typical case of business localization. They quit the China market after 1949, but gradually returned to China to invest and extend its business after 1992. These enterprises have over 100 year’s history, and in each case, enterprises still survived in some form in China until today, even became competitive international companies.

The experience of those enterprises is fairly common in virtually all less-developed countries. Such types of enterprises also exist in other emerging economies. They may be as large or smaller, and their operations may be more or less international. In broad terms, they often experienced three phases of development. (a) Establishment and learning phase in the early 20th century. (b) Stagnation and transformation phase in the mid-20th century, as many enterprises were nationalised as part of economic nationalist policy agendas pursued in less-developed countries following independence. (c) Privatisation in some cases, but particularly change from imitating to independent innovation, and gradually penetrating global markets to become competitive international companies by the late 20th century.

This session intends to discuss the development of such enterprises in the changing business contexts of emerging economies around the world. Participants in the session will discuss and compare, for example, the transformation of individual enterprises during different time periods, the influence of colonization and decolonisation on companies, and the historical and institutional background of innovative capabilities of these companies. The ultimate aim of the session is to facilitate generalisations of the evolution of such enterprises, and their role in fostering innovation and therefore economic growth in emerging economies. We welcome both case-specific studies in business history and macro-level studies that link enterprise development to innovation and economic growth throughout the 20th century.

Keywords: centennial enterprises, foreign investment, technology transfer, innovation, economic development

Organizer(s)

  • Denggao LONG Tsinghua University yiw14@mails.tsinghua.edu.cn China
  • Pierre van der Eng Australian National University Pierre.VanDerEng@anu.edu.au Australia

Session members

  • Bo Zhong Li, Tsinghua University
  • Wei Yi, Tsinghua University
  • Ning Gong, Tsinghua University
  • Pui Tak Lee, Hong Kong University
  • Lin Xu, Shanghai Academy of Social Sciences
  • Zhao Jin Zeng, University of Texas at Austin
  • Paloma Fernández Pérez, Universitat de Barcelona
  • Shu Sheng Fang, Shanghai Academy of Social Sciences
  • Jian Li, Shanghai University
  • Takeshi Mine, The University of Tokyo
  • Miao Wang, Tsinghua University
  • Yao Ouyang, Hunan Normal University
  • Xiaofang Sheng, Hunan Normal University
  • Åsa Malmström Rognes, Uppsala University
  • Panarat Anamwathana, Wadham College, University of Oxford
  • Jiao Zhang, Tsinghua University

Discussant(s)

  • Michael Yuan Roger Williams University yuan.my@gmail.com
  • Pierre van der Eng Australian National University Australian National University

Papers

Panel abstract

The papers in this session explore the question how long-established enterprises have survived the twists and turns of competition, political change and the evolving business context in emerging economies, and ask how their resilience contributed to the development of their home economies and prepared them for internationalisation. The papers presented in this session take different perspectives. Some take a long-term perspective, covering a century or more, others focus on crucial episodes in the existence of these firms. Some take comparative perspectives across countries or enterprises, but most papers focus on a single enterprise in a single country. Several papers in this session discuss enterprises in China, where there is currently considerable interest among economic historians in studying the factors that help to understand the historical resilience of enterprises; both private and state-owned. But papers presented in the session also cover firms in The Philippines, Mexico and Brazil.

1st half

Innovation and Monopoly:the Formation and Evolution of the Petroleum Corporation System in Modern China,1946-1949

Lin Xu

As a developing country, China had made innovations and development in modern enterprises over the past 100 years. These enterprises not only showed the scale of individual enterprises, but also transformed from traditional industries to strategic emerging industries such as oil, steel and electromechanical industries. Petroleum industry was an important strategic emerging industry in China. Then the evolution of its enterprises not only determined the industrialization process of modern China but also the stability of energy and economic security. This paper intends to focus on the “China Petroleum Limited Company “(CPLC) (1946-1949)of the “National Resources Commission” (NRC). And this paper intends to explore the development trajectory of China's petroleum industry in the past 70 years. Furthermore this paper also attempts to think about the innovation impetus and innovation form of the rechemical industry enterprise system of less-developed countries after the end of world warⅡ.

As a developing country, China had made innovations and development in modern enterprises over the past 100 years. These enterprises not only showed the scale of individual enterprises, but also transformed from traditional industries to strategic emerging industries such as oil, steel and electromechanical industries. Petroleum industry was an important strategic emerging industry in China. Then the evolution of its enterprises not only determined the industrialization process of modern China but also the stability of energy and economic security. This paper intends to focus on the “China Petroleum Limited Company “(CPLC) (1946-1949)of the “National Resources Commission” (NRC). And this paper intends to explore the development trajectory of China's petroleum industry in the past 70 years. Furthermore this paper also attempts to think about the innovation impetus and innovation form of the rechemical industry enterprise system of less-developed countries after the end of world warⅡ.

The Impact of Chinese Entrepreneurs on the Industrialization of Indonesia

Jiao Zhang, Denggao Long

After the second world war, Liem Sioe Liong and other Chinese entrepreneurs support Indonesia's national economic development. They actively response to the national industrial development policy, and established the large-scale capital joint venture, such as cement plants, flour mills, steel plant and a series of enterprises, promoting the process of Indonesia’s industrialization. In previous studies, the view take franchise as "Crony Capitalism" is a kind of bias. The strong political-commercial relationship not only match the needs of national economic strategy transformation, but also can realize the resource allocation, achieving the economies of scale. In the history, it’s also the normal economic phenomenon to one country in which the power has just been liberalized.

After the second world war, Liem Sioe Liong and other Chinese entrepreneurs support Indonesia's national economic development. They actively response to the national industrial development policy, and established the large-scale capital joint venture, such as cement plants, flour mills, steel plant and a series of enterprises, promoting the process of Indonesia’s industrialization. In previous studies, the view take franchise as "Crony Capitalism" is a kind of bias. The strong political-commercial relationship not only match the needs of national economic strategy transformation, but also can realize the resource allocation, achieving the economies of scale. In the history, it’s also the normal economic phenomenon to one country in which the power has just been liberalized.

The Engineer-in-Chief employment mechanism and the development of Modern China's Dredging Industry

Denggao Long, Wei Yi, Miao Wang

In the late Qing Dynasty, Hai-ho Conservancy Commission(1897) and Whangpoo Conservancy Board(1905) were established in Tianjin and Shanghai, becoming the origin of modern dredging industry in China, mainly responsible for dredging projects and maintenance the channel of Hai-ho and Huangpu River. Engineer-in-chief is responsible for overall business operation, adopts internationalized management model and operating mechanism. Its employment mechanism, work authority, and independence reflect the institutional nature and operational characteristics of both organizations, and have made outstanding contributions to the development of China's dredging. They rely on its international background and making a broad perspective. Through hiring foreign technology and management experts, they have extensively and comprehensively contacted and introduced the world’s most advanced dredging technology and equipment at the time, adapted and transformed them locally, forming a high starting point for the China dredging and nurturing early professional technologies and talents, thus laid the foundation for China's modern dredging business.

In the late Qing Dynasty, Hai-ho Conservancy Commission(1897) and Whangpoo Conservancy Board(1905) were established in Tianjin and Shanghai, becoming the origin of modern dredging industry in China, mainly responsible for dredging projects and maintenance the channel of Hai-ho and Huangpu River. Engineer-in-chief is responsible for overall business operation, adopts internationalized management model and operating mechanism. Its employment mechanism, work authority, and independence reflect the institutional nature and operational characteristics of both organizations, and have made outstanding contributions to the development of China's dredging. They rely on its international background and making a broad perspective. Through hiring foreign technology and management experts, they have extensively and comprehensively contacted and introduced the world’s most advanced dredging technology and equipment at the time, adapted and transformed them locally, forming a high starting point for the China dredging and nurturing early professional technologies and talents, thus laid the foundation for China's modern dredging business.

Tracing the Evolution and Performance of the Market Structure of Match Industry in Modern China: centered on Liu Hongsheng enterprises, 1900-1958

Shusheng Fang

In the first half of twentieth century, with the increasing number of enterprises and the development of modern Chinese industrial economy, the two different economic organizations of the enterprises and the market are closely related and become the logical basis for measuring the evolution of the system. This paper analyses the evolution of China match industry market structures in the 1900-1958 years, by asking the control, division and substitution of the enterprises to the market, as well as the reaction of the market to the enterprises, not only obtains the complete path map of the abnormal evolution of market structure, but also observes the performance and characteristics of them, it will also help to further explore the transaction costs and performance of the private enterprises and the broad significance of the evolution of the market structure in the early twentieth century in the history of industrial organization development.

In the first half of twentieth century, with the increasing number of enterprises and the development of modern Chinese industrial economy, the two different economic organizations of the enterprises and the market are closely related and become the logical basis for measuring the evolution of the system. This paper analyses the evolution of China match industry market structures in the 1900-1958 years, by asking the control, division and substitution of the enterprises to the market, as well as the reaction of the market to the enterprises, not only obtains the complete path map of the abnormal evolution of market structure, but also observes the performance and characteristics of them, it will also help to further explore the transaction costs and performance of the private enterprises and the broad significance of the evolution of the market structure in the early twentieth century in the history of industrial organization development.

Innovation or rent-seeking: the relationship between institutions and talent allocation in modern China

Sheng Xiaofang, Ouyang Yao

this paper employs the theory about the allocation of talent between productive (such as innovation) and unproductive (such as rent-seeking) activities to analyze how enterprises developed in modern China and why almost died in the end, and concludes that institution determines the talent allocation between innovation and rent-seeking, which further decide the economic growth.

this paper employs the theory about the allocation of talent between productive (such as innovation) and unproductive (such as rent-seeking) activities to analyze how enterprises developed in modern China and why almost died in the end, and concludes that institution determines the talent allocation between innovation and rent-seeking, which further decide the economic growth.

The development of the small-scale production technology of nitrogen fertilizers in the day of Mao Ze Dong and the innovation afterwards under the open door policy

Takeshi Mine

1. The small-scale production introduced by the initiative of Chairman Mao In the time of the planning economy the small-scale production was preferred in China due to Chairman Mao’s self-reliance strategy. Chairman Mao feared that USA and/or USSR will attack and invade into China, and designed the geographically dispersed production structure because the concentration of production will cause a serious damage on the Chinese economy in case USA and /or USSR attack into China. The five small-scale industries (fertilizer, cement, machinery, steel and iron and energy (coal and hydropower)), which were developed by the domestic technology, supported the economic foundation of the socialist China, enabling self-reliance strategy. The small-scale fertilizer production was most successful among the five. The aim of this paper is to analyze how the small-scale production technology of the nitrogen fertilizer was developed and how it has been changed by the innovation under the open door policy....

1. The small-scale production introduced by the initiative of Chairman Mao In the time of the planning economy the small-scale production was preferred in China due to Chairman Mao’s self-reliance strategy. Chairman Mao feared that USA and/or USSR will attack and invade into China, and designed the geographically dispersed production structure because the concentration of production will cause a serious damage on the Chinese economy in case USA and /or USSR attack into China. The five small-scale industries (fertilizer, cement, machinery, steel and iron and energy (coal and hydropower)), which were developed by the domestic technology, supported the economic foundation of the socialist China, enabling self-reliance strategy. The small-scale fertilizer production was most successful among the five. The aim of this paper is to analyze how the small-scale production technology of the nitrogen fertilizer was developed and how it has been changed by the innovation under the open door policy. 2.Utilizing ammonium bicarbonate as nitrogen fertilizer After World War II urea, which is produced by ammonia and carbon dioxide as raw materials, became the major nitrogen fertilizer. In China, however, technology utilizing ammonium bicarbonate (NH4HCO3), which is also produced by ammonia and carbon dioxide, as the nitrogen fertilizer was developed. China is the only nation which utilized ammonium bicarbonate as the nitrogen fertilizer. Ammonium bicarbonate is not effective as the nitrogen fertilizer since its nitrogen nutrient content is very low and since it is easy to deteriorate during transportation and storage. But the production cost of ammonium bicarbonate is very low. So poor farmers can purchase it with the very cheap price. Coals, the raw material of ammonia and carbon dioxide, are widely available in China. Furthermore, ammonium bicarbonate plants were able to be constructed by using domestic pig irons, without using the high grade steel such as the stainless steel which is indispensable in the case of urea plants. As a result lots of ammonium bicarbonate plants were constructed in the midst of farming land of the rural area. Table 1 tells us that ammonium bicarbonate was the major nitrogen fertilizer of China. The column “small-scale plant” of the table indicates the production of ammonium bicarbonate. The plant location in the rural areas reduced the loss during transportation and storage. China is the only nation in the world that utilized ammonium bicarbonate as the fertilizer. We can say that ammonium bicarbonate is the product of the so-called appropriate technology. 3. Innovation to convert ammonium bicarbonate plant to urea plant The open door policy started in the end of 1970’s. The fertilizer companies began to seek more reasonable production technology and developed the technology to convert ammonium bicarbonate plants to urea plants. In 1986 Shang dong Pingdu Chemical Fertilizer Company of Shang dong Province succeeded in innovating technology and started urea production from the plant which was originally constructed as ammonium bicarbonate plant. Since that time ammonium bicarbonate plants of China were converted to urea plants one by one. Nowadays almost all ammonium bicarbonate plants were converted to urea plants. Urea plants were constructed in China also by the imported large-scale technology at the same time. So China’s urea production consists of both the domestically developed small-scale urea production, namely production from the ammonium bicarbonate converted plants, and the large-scale production by the imported technology. At present China is the largest urea producing nation in the world. It needs to be stressed that the major part of China’s urea production is from the ammonium bicarbonate converted urea plants rather than from the large-scale urea plants by the imported technology. Table 2 tells us that 58.1 % of the urea production of China in 2007 was small-scale urea production, namely urea production from the ammonium bicarbonate converted plants The fact that the major part of China’s urea production is from the ammonium bicarbonate converted plants tells us that the structure of China’s nitrogen fertilizer production has been strongly influenced by the technology developed in the day of Mao Ze Dong.

2nd half

Leadership role of Ningbo Merchants in technological advances and practices in modern Shanghai industrialization

Jian Li

Ningbo businessmen and entrepreneurs possess unique characteristics and social status in local society. Based on the established business model and entrepreneur system, they played a critically important role in improving technological advances and industrial infrastructure and system and policy, thus stimulating modernization and urbanization of Shanghai, and helping Shanghai’s successful progression from the traditional regionalized group merchants to modern ones. This is just like what was stated by a famous American economist: “to a large extent, the economic development of a country is depending on the entrepreneur's innovative ideas and activities.” We focus on Ningbo (or Yong) merchants of Shanghai because “Ningbo business group” is the most successful and powerful group among all groups in Shanghai in terms of its overall capabilities. The success of Yong merchants is the result of its own unique characteristics combining with the unique social ecology of modern Shanghai. During modern times, the concept of...

Ningbo businessmen and entrepreneurs possess unique characteristics and social status in local society. Based on the established business model and entrepreneur system, they played a critically important role in improving technological advances and industrial infrastructure and system and policy, thus stimulating modernization and urbanization of Shanghai, and helping Shanghai’s successful progression from the traditional regionalized group merchants to modern ones. This is just like what was stated by a famous American economist: “to a large extent, the economic development of a country is depending on the entrepreneur's innovative ideas and activities.” We focus on Ningbo (or Yong) merchants of Shanghai because “Ningbo business group” is the most successful and powerful group among all groups in Shanghai in terms of its overall capabilities. The success of Yong merchants is the result of its own unique characteristics combining with the unique social ecology of modern Shanghai. During modern times, the concept of regionalization (hometown) and its subsequent organizations are key components of Shanghai culture and history and its municipal environment with obvious model of “same profession from the same region (hometown).” In addition to analyzing the characteristics of Yong merchants and their impacts on economic and social development of Shanghai, we emphasize on identifying and analyzing the components for modern Shanghai industrial development and innovation mechanism, as well as the impacts of social change, policy factors on enterprise development and transformation.

Governing Family Firms for the Long Term in the Philippines

Asa Malmstrom Rognes

This paper examines governance practices in family business groups in the Philippines and how these have evolved over time to sustain profitability and entrepreneurship. The question of longevity comes up with respect to family firms since the expectation is low that a family can keep ownership and control while maintaining a prosperous business over time. Stories abound of squandered wealth in family firms where heirs have failed to manage the business. It is never quite clear what the general expectation of longevity is for a firm regardless of ownership structure. The Corporation Code in the Philippines says that the corporation is expected to last for fifty years. An extension can easily be made but it is nevertheless noteworthy that the law includes a time limit. Studies of longevity note that firms change corporate form or owners through mergers and acquisitions but the products or services continue to be produced. In...

This paper examines governance practices in family business groups in the Philippines and how these have evolved over time to sustain profitability and entrepreneurship. The question of longevity comes up with respect to family firms since the expectation is low that a family can keep ownership and control while maintaining a prosperous business over time. Stories abound of squandered wealth in family firms where heirs have failed to manage the business. It is never quite clear what the general expectation of longevity is for a firm regardless of ownership structure. The Corporation Code in the Philippines says that the corporation is expected to last for fifty years. An extension can easily be made but it is nevertheless noteworthy that the law includes a time limit. Studies of longevity note that firms change corporate form or owners through mergers and acquisitions but the products or services continue to be produced. In some cases brands remain regardless of owner and the firm in some sense lives on. One example is the case of take-overs in the automotive industry where Volvo for example has changed owners twice since it was founded but the brand remains regardless of owner. Longevity and survival indicate how well a family has managed to secure funding and how well they have governed the firm. As Colli and Larsson put it in family firms “longevity and survival are both strategic goals and a measure of performance” (Colli and Larsson 2014). James’ exposé of the Wendels, Haniels and Falcks illustrate well how family dynasties in three countries managed their family firms over time, both in terms of who was chosen to lead and how that choice was made (2006). The study also shows how these firms were managed and responded to the changing times. They adapted their businesses to changes in demand and diversified as a way to balance risks, and displayed flexibility in how they governed their respective firms. The Wendels and Haniels succeeded in changing strategies and leaving steel in time and continues to be successful whereas Falcks didn’t change their mix until later. To understand what make firms last through decades or even centuries studies have come up with different answers. There are three aspects to consider; finance, governance, and strategy. These apply to all firms but kinship is what sets family firms apart. Kinship is central in a family firm and influences, and sometimes limits, the options regarding how a firm can be financed and governed. This paper will deal primarily with governance and to some extent strategy and finance since that reflect governance decisions. Here governance is related to who governs the firm as well as how it is governed. Many family firms were founded by entrepreneurs who identified a need for a product or service. Some manage to build a sizeable firm and entered into new businesses again and again and expanded one firm into a group of firms. Others kept to a single line of business. Entrepreneurship can be difficult to maintain in subsequent generations. On the other hand, managing new investments and risks can be learnt and lessons be harnessed over time depending on how they are managed. In family firms, the executive power rests with a family member in the first generation. The founder often appoints an heir to take over. In subsequent generations it may be difficult to choose among several heirs and how succession is managed is one aspect of governance. In some cultures, such as Japan, it is customary that the oldest son takes over, primogeniture is the norm (eg Morikawa 2001). In others such as China, inheritance should be divided equally among siblings. Some family firms, such as the Lopez family in the Philippines, argue that it is the primus inter pares; the first among equals who should take over the leadership role (Rodrigo 2000). Management scholars have found that well governed family firms that succeed across generations make clear plans and rules for both succession and appointment of external managers (Gavino et al 2001). This paper focuses on governance and how business group in the Philippines have managed to prosper through revolutions, wars, independence, and martial law in addition to periods of high growth as well as crisis years. The paper focuses in particular on the Ayala group which was founded in 1834 but also makes reference to other centennial family business groups in the Philippines. These groups have been chosen since they are among the largest family business groups in the Philippines. They have been in business for more than a century. They have a strong base in a core industry but have diversified over the years. They are the Ayala group with a base in real estate and financial services, the Aboitiz group with a base in shipping and power, and the Lopez group with a base in media and energy. The paper analyses governance in these groups from a theoretical perspective and finds that while they have slightly different governance models they all have longevity as a goal and a measure of performance. The paper is based on my PhD thesis Family Matters: Essays on families, firms and funding in the Philippines 1850-2014 from 2016.

Nourishing Shanxi: Indigenous Entrepreneurship, Regional Industry, and the Transformation of a Chinese Hinterland Economy, 1907-2004

Zhaojin Zeng

This project examines China’s economic transformation by focusing on indigenous entrepreneurship and regional industrial enterprises in the long twentieth century. It provides a micro history of Shanxi merchants and their largest industrial business, the Baojin Coal and Iron Company. Drawing on research in nearly a dozen archives in China, Japan, Taiwan, Sweden, and the United States, including the 30,000-page Baojin Company Archive, this project explores how China’s local businesspeople and industrial enterprises interacted with the five successive states: Qing, Republican, Japanese, Communist, and Post-Mao. By highlighting continuity in entrepreneurial culture, economic institutions, and local industrial development, this project demonstrates that the processes of state-business interactions were central to understanding the making of the modern Chinese economy and challenges the prevailing interpretation of Chinese economic transformation as merely the result of the success and failure of state policy.

This project examines China’s economic transformation by focusing on indigenous entrepreneurship and regional industrial enterprises in the long twentieth century. It provides a micro history of Shanxi merchants and their largest industrial business, the Baojin Coal and Iron Company. Drawing on research in nearly a dozen archives in China, Japan, Taiwan, Sweden, and the United States, including the 30,000-page Baojin Company Archive, this project explores how China’s local businesspeople and industrial enterprises interacted with the five successive states: Qing, Republican, Japanese, Communist, and Post-Mao. By highlighting continuity in entrepreneurial culture, economic institutions, and local industrial development, this project demonstrates that the processes of state-business interactions were central to understanding the making of the modern Chinese economy and challenges the prevailing interpretation of Chinese economic transformation as merely the result of the success and failure of state policy.

Entrepreneurship and successful family businesses in emerging economies of the world. The cases of Hutchinson Whampoa (Hong Kong-China), Grupo Carso (Mexico) and Pao de Açucar (Brazil)

Paloma Fernández Pérez

This study examines entrepreneurship as a key factor influencing the creation, survival and success of old family business in the 20th century in three emerging economies: China, Mexico and Brazil. Entrepreneurship often is related to Schumpeterian entrepreneurs and innovative firms or business groups (Cassis and Minoglou 2005). Sometimes, also to families and entrepreneurial dynasties well embedded in specialized sectors and industrious regions (Landes 2006). Traditional management literature has often approached the study of entrepreneurship from an ahistorical perspective, studying in particular the conditions that favour or make difficult the creation and survival of entrepreneurs, usually focusing in developed economies (i.e. Audretsch D., Thurik R., Verheul, I.; Wennekers 2002; Acs and Audretsch 2003).

This study examines entrepreneurship as a key factor influencing the creation, survival and success of old family business in the 20th century in three emerging economies: China, Mexico and Brazil. Entrepreneurship often is related to Schumpeterian entrepreneurs and innovative firms or business groups (Cassis and Minoglou 2005). Sometimes, also to families and entrepreneurial dynasties well embedded in specialized sectors and industrious regions (Landes 2006). Traditional management literature has often approached the study of entrepreneurship from an ahistorical perspective, studying in particular the conditions that favour or make difficult the creation and survival of entrepreneurs, usually focusing in developed economies (i.e. Audretsch D., Thurik R., Verheul, I.; Wennekers 2002; Acs and Audretsch 2003).

Tracing the development of semi-governmental enterprises in Thailand in three sectors: textiles, sugar, and gunny sacks, 1932-1957

Panarat Anamwathana

This paper traces the development of industries which the state ‘desired to create’ – textiles, sugar, and gunny sacks – through the economic upheavals of the pre-war, World War II, and post-war periods. It also argues that developments under the Japanese occupation in 1942-1945 played an important role in the growth of manufacturing in the late 1940s and 1950s. All three case studies demonstrate not only the complexities (and corruption) involved with running semi-governmental enterprises to supply goods to the public, but also that the Japanese occupation did much to lay the basis for swift post-war change. The state established a framework and foundation to supply the country with much-needed products. Though these efforts did not alleviate acute wartime scarcity, the institutions and procedures created between 1942 and 1945 gave the state a foothold in these sectors.

This paper traces the development of industries which the state ‘desired to create’ – textiles, sugar, and gunny sacks – through the economic upheavals of the pre-war, World War II, and post-war periods. It also argues that developments under the Japanese occupation in 1942-1945 played an important role in the growth of manufacturing in the late 1940s and 1950s. All three case studies demonstrate not only the complexities (and corruption) involved with running semi-governmental enterprises to supply goods to the public, but also that the Japanese occupation did much to lay the basis for swift post-war change. The state established a framework and foundation to supply the country with much-needed products. Though these efforts did not alleviate acute wartime scarcity, the institutions and procedures created between 1942 and 1945 gave the state a foothold in these sectors.