Fellow-townsmenship as the mechanism for exploring and exploiting business opportunities: A longitudinal reflection of the nineteenth century Ningbo entrepreneurs in Shanghai

Abstract

This research examines how fellow-townsmenship, a distinctive homophilous social network, functioned among Ningbo entrepreneurs pertaining to their simultaneous exploration and exploitation of business opportunities, or achieving ambidexterity, in the nineteenth century. By investigating data in relevant historical records from museums, archives and libraries, case studies based on two representative Ningbo entrepreneurs from a distinctive business family showcase how those entrepreneurs took advantage of townsmenship to resolve the trade-off between exploration and exploitation. In doing so, simultaneous exploration and exploitation alongside the expansion of fellow townsmenship proved to be effective and successful. This research provides new grounds to examine ambidexterity.

Keywords::

• entrepreneurship, fellow-townsmenship
• social network
• ambidexterity

Notes

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30. March, “Exploration and Exploitation,” 71–87;

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37. Cao et al., “Unpacking Organizational Ambidexterity,” 781–796; Gibson and Birkinshaw, “The Antecedents,” 209–226; He and Wong, “Exploration vs. Exploitation,” 481–494; Simsek, “Organizational Ambidexterity,” 597–624.

38. Gibson and Birkinshaw, “The Antecedents,” 209–226.

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42. See note 37 above.

43. Ibid., 209.

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49. Fischer, Networks and Places; Laumann, Prestige and Association; McPherson and Smith-Lovin, “Homophily in Voluntary Organizations,” 370–379; Bainbridge and Stark, “Friendship, Religion and the Occult,” 313–327; Ibarra, “Race, Opportunity,” 673–703; Kaufman, Race, Gender, and the Labor Market; Kleinbaum et al., “Discretion within Constraint,” 1316–1336.

50. McPherson and Smith-Lovin, “Homophily in Voluntary Organizations,” 370–379.

51. McPherson et al., “Birds of a Feather,” 416.

52. McDade, “Liverpool Slave Merchant,” 1092–109.

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54. Burt, “The Gender of Social Capital,” 5–46; Nahapiet and Ghoshal, “Social Capital, Intellectual Capital,” 242–66.

55. Kleinbaum, “Discretion Within Constraint,” 1316–1336.

56. Ruef et al., “The Structure of Founding Teams,” 195–222.

57. Phillips et al., “Building Entrepreneurial Tie Portfolios,” 134–150.

58. Dou, The Study of Townsmen Association [in Chinese]; Ellis, “Social Stratification and Social Relations,” 570–78; Lasswell, “A Study of Social Stratification,” 310–313; Wang, Chinese Interpersonal Relations [in Chinese].

59. See note 56 above.

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61. Liang and Zheng, The Study of Overseas Chinese History [in Chinese]; Wu, Overseas Chinese [in Chinese].

62. Chen et al., “Guanxi Practices,” 200–209; Puffer et al., “Entrepreneurship in Russia,” 441–467; Xin and Pearce, “Guanxi: Connections as Substitutes,” 1641–1658.

63. Lo, “Chinese Guanxi and Anglo-American Networking,” 216

64. Cui and Zhu, Chinese “guanxi” [in Chinese]; Wang, Chinese Interpersonal Relations [in Chinese]; Xie, The Attitudes and Arts of Contact [in Chinese].

65. Burt, “The Gender of Social Capital,” 5–46.

66. Nahapiet and Ghoshal, “Social Capital, Intellectual Capital” 242–266.

67. See note 55 above.

68. Guo, The Townsmen Association in Old Shanghai [in Chinese]; Phillips et al., “Building Entrepreneurial Tie Portfolios,” 134–150.

69. The term ‘Ningbo Bang’ encompasses a variety of formal institutions, such as Ningbo Commerce Group, and informal social networks. All these organizations and networks are formed based on entrepreneurs in or from Ningbo. Sun and Li, “The Historical Factors and Functions,” [in Chinese], 4; Zhang, The History of Jiangnan [in Chinese].

70. Chen, The Study of Ningbo Bang [in Chinese].

71. Source: Ningbo Bang Museum

72. See note 69 above.

73. Source: Ningbo Bang Museum

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75. Chen, “The Rise of Ningbo Bang” [in Chinese], 2; Xie, “The Historical Report” [in Chinese], 8–13.

76. Zhu, Lui, and Chen, Shanghai Immigrants [in Chinese]; Zhou, “The pen of Shanghai Port” [in Chinese], 4.

77. ‘When small cabbages are tender and fresh; my husband leaves for Shanghai. He brings back not only money, but also Shanghai's local specialties to share with neighbors. They all call him a good guy.’ Source: Ningbo Bang Museum.

78. Jin, “The Characteristics” [in Chinese], 2; Sun, “About the Formation” [in Chinese], 3.

79. Source: the Article of Yinxian.

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81. Lin, Ningbo Businessman [in Chinese].

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84. Chen, The Study of Ningbo Bang [in Chinese]; Jin, “The Characteristics” [in Chinese], 2; Lin, Ningbo Businessman [in Chinese].

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91. Jin, “About the Rise and Decline” [in Chinese], 9.

92. See note 69 above.

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95. Zhang, The History of Jiangnan [in Chinese]

96. Li, Start Business [in Chinese], 69–83

97. See note 80 above.

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99. Jin and Sun, Comprehensive Dictionary [in Chinese].

100. See note 91 above.

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104. See note 91 above.

105. See note 80 above.

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107. Chen and Lu, “The Rise and Decline” [in Chinese], 2; Zhang, The History of Jiangnan [in Chinese], 3.

108. Zhang, The History of Jiangnan [in Chinese] 3.

109. Ibid.

110. We use this term in according with Ningbo Bang Museum and other Ningbo-related publications.

111. Zou, “Ningbo Chien-Chuang” [in Chinese], 6.

112. Yin, Businessmen [in Chinese].

113. Wang and Ji, The Changes [in Chinese].

114. See note 108 above.

115. Zhang, The History of Jiangnan [in Chinesei] 4.

116. See note 94 above.

117. Wen, “The Achievement” [in Chinese], 2.

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119. Chen and Lu, “The Rise and Decline” [in Chinese], 2.

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121. See note 113 above.

122. Zhang, The History of Jiangnan [in Chinese] 5–6.

123. See note 112 above.

124. Wen, “The Achievement” [in Chinese], 2; Zhang, The History of Jiangnan [in Chinese], 4–6.

125. Source: Ningbo Bang Museum

126. See note 119 above.

127. Zhang, The History of Jiangnan [in Chinese], 24–29

128. Zhang, The History of Jiangnan [in Chinese], 24–29, 40.

129. Zhang, The History of Jiangnan [in Chinese], 40–42.

130. Hua, Ningbo Bang and China Modern [in Chinese]; Qin, The History of Ningbo Bang [in Chinese].

131. Jin and Sun, Comprehensive Dictionary [in Chinese]; Qin, “The Rise” [in Chinese], 3.

132. Ibid.

133. Zhang, The History of Jiangnan [in Chinese], 42–43.

134. Ibid.

135. Zhang, The History of Jiangnan [in Chinese], 42–43; Li, Start Business [in Chinese], 69–83.

136. Jin and Sun, Comprehensive Dictionary [in Chinese]; Zhang, The History of Jiangnan [in Chinese].

137. Qin, The History of Ningbo Bang [in Chinese].

138. Jin and Sun, Comprehensive Dictionary [in Chinese]; Lu, Discussion About Zhejiang merchants [in Chinese].

139. Li, Start Business [in Chinese], 1–7.

140. Chu, Ningbo Bang and Chinese Modern Banks [in Chinese].

141. Jin and Sun, Comprehensive Dictionary [in Chinese], 69; Lin, Ningbo Businessman [in Chinese].

142. Jin and Sun, Comprehensive Dictionary [in Chinese], 245.

143. Jin and Sun, Comprehensive Dictionary [in Chinese], 136.

144. Li, Start Business [in Chinese], 71–72; Zhang, The History of Jiangnan [in Chinese], 47–55.

145. Hu, “Li Shanxiang” [in Chinese]; Li, Start Business, 71–72.

146. Ibid.

147. Zhang, The History of Jiangnan [in Chinese], 47–53.

148. See note 47 above.

149. Zhang, The History of Jiangnan [in Chinese], 44–45.

150. Zhang, The History of Jiangnan [in Chinese], 45–46; Li, Start Business [in Chinese], 76.

151. Jin and Sun, [In Chinese] [Dictionary], 24.

152. Zhang, The History of Jiangnan [in Chinese], 45–46.

153. Jin and Sun, Comprehensive Dictionary, 214; Li et al., Start Business [in Chinese], 76; Zhang, The History of Jiangnan [in Chinese], 44–47.

154. Tushman and O'Reilly, “Ambidextrous Organizations,” 8–30.

155. Pérez and Puig, “Knowledge and Training” 79–99; Phillips et al., “Building Entrepreneurial Tie Portfolios,” 134–150.

156. See note 53 above.

157. See note 47 above.

158. Granovetter, “Problems of Explanation,” 25–56; Pérez and Puig, “Knowledge and Training,” 79–99; Phillips et al., “Building Entrepreneurial Tie Portfolios,” 134–150.

159. Coleman, “Social Capital in the Creation,” S95–S120.

160. Granovetter, “Problems of Explanation,” 25–56; Pérez and Puig, “Knowledge and Training,” 79–99; Harvey and Press, “The City and International Mining,” 98–119; López-Morell and O'Kean, “A Stable Network,” 163–84; Roscoe et al. “How Does an Old Firm Learn New Tricks?,” 53–72.

161. Orr, “Sharing Knowledge, Celebrating Identity,” 169–189.

162. Au and Kwan, “Start-up Capital,” 889–908.

163. Sun and Li, “The Historical Factors and Functions” [in Chinese], 4; Xie, “The Historical Review” [in Chinese], 8–13.

164. See note 40 above.

165. See note 43 above.

166. Schreyögg and Sydow, “Organizing for Fluidity?” 1251–1262.

167. See note 35 above.

168. See note 38 above.

169. See note 45 above.

Additional information

Notes on contributors

Martin J. Liu

Dr Yannoupolou's research interests are mainly in the area of consumer behaviour, branding and marketing communications.

Jimmy Huang

Zhengzhi Guan is a senior student from Nottingham Business School University China majoring in International Business Management, and his recent research interest is social network analysis in social capital study.

Alain Yee-loong Chong

Dr Chong's research focuses in the field of technology adoption and social networking.

Zhengzhi Guan

Dr J. Huang's research focuses on the process and dynamic of knowledge exploration and exploitation with a specific interest in the context of IT-related entrepreneurship and innovation.

Natalia Yannopoulou

Dr Liu's research focuses in the field of marketing with specific interest on the impact of social networks on decision making process.