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| INFORMAL FACTORS, SME NETWORKS AND REGIONAL DEVELOPMENT——A Study of Textile Enterprises in Zhaizhen, Henan Province |
| WEN Hu1, LI Xiaojian2 |
1. Department of Geography, East China Normal University, Shanghai 200062, China;
2. College of Environment & Planning, Henan University, Kaifeng 475001, China |
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Abstract Network in this paper is a synthetic substance of local behavior subjects and their relationship, which concentrates relatively on an area and relates to enterprise activity. Network contains nodes and relationship. The nodes include producer, cooperator, supplier, customer, university, scientific research institution, government and intermediary institution. The relationships include the formal and informal relationship. It has its personalities, such as extensive linkage, multilateral subject, boundless integration, mutually beneficial internal, and knot acting mutually etc. This paper points out that the process of network learning and innovation is not abstract, there are some rules in this process. This paper thinks that special history, culture, institution environment have deep influence on networks formation. The relationship under the function of Confucianism, buddhism, family institution product cohesive force, trust, and prompt the network formation and guarantee the stability of network. Informal relationships are the mainly thoroughfare of learning. Network is the carrier of knowledge flowing. By detailed fieldwork and theory analysis in "textile town" ——Zhaizhen's local SME networks, this paper comprehensively analyzes the learning process of SME networks. The author discusses deeply the learning process of the small and middle enterprises under the circumstance of china's unique culture and institutional thickness. In textile network of Zhaizhen, the informal linkages such as intercommunicating face-to-face and contacting are the mainly byway of learning. In network learning process, producers, customers, suppliers of raw materials, suppliers of machine, cooperators, and government act mutually. Though lots of abnormal relationships, all kinds of knowledge and information such as the knowledge of market need, the knowledge of market supply, the knowledge of management, the knowledge of technology, the knowledge of organization flowing, transmitting, disseminating, colliding, and explicit knowledge and tacit knowledge, produce a kind of gradual innovation-imitated innovation.
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Received: 02 January 2002
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2003, Vol. 18 
