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Business Networking in the Industrial Revolution

Robin Pearson and David Richardson
The Economic History Review
Vol. 54, No. 4 (Nov., 2001), pp. 657-679
Published by: Wiley on behalf of the Economic History Society
Stable URL: http://www.jstor.org/stable/3091626
Page Count: 23
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Business Networking in the Industrial Revolution
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Abstract

Business networking in early industrial Britain delivered efficiency gains by lowering transaction costs as resources were shared across webs of acquaintances whose non-economic forms of association assisted networking. The pooling of resources through trust and associational conventions allowed the spreading of risk, notably when groups of associates diversified collectively into new enterprises. This article examines the composition and interconnections of four groups that established insurance offices in the north and west of England between 1776 and 1824, and offers evidence for the economic importance of their networking activity.

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