Barriers to Innovation in Marketing in the Mid-Nineteenth Century: Merchant-Manufacturer Relationships

Andrew Popp

Business History, 2002, vol. 44, issue 2, 19-39

Abstract: This article uses new archival material from the North Staffordshire pottery industry to examine the process of transition from one institutional mode to another in marketing and distribution in the mid-nineteenth century. Drawing on detailed evidence of relationships between the manufacturing firm of Cork, Edge & Malkin and British and overseas merchants, it is demonstrated that the mercantile system did offer manufacturers low transaction costs in export markets. However, it is argued that high information costs were a more potent constraint on institutional innovation than was the disincentive of low transaction costs.

Date: 2002
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DOI: 10.1080/713999265

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