This paper delves into the growth of the Japanese silk industry during the 1890s, with a specific focus on Kin-gyo Kaisha, a silkworm-egg company located in Shiojiri Village, Nagano Prefecture. Shiojiri Village was renowned as the primary area for silkworm-egg production in Japan during that period. The study examines the historical development of the silkworm-egg industry as it underwent modernization, exploring aspects such as the transition to the company form, the production and sales of silkworm eggs, and the role of the company (organization) in the modernization process.
Under the management of Kin-gyo Kaisha, silkworm-egg production mainly involved the company’s members utilizing a combination of in-house breeding and consignment production. The company maintained quality control by inspecting the silkworm eggs, ensuring their standards were upheld and enabling them to meet the rising demand, thus increasing their sales capacity.
In response to fierce market competition, Kin-gyo Kaisha adopted two strategies. Firstly, the company’s members maintained or expanded their individual sales channels to prevent interference with one another. Secondly, the company initiated joint sales efforts. Furthermore, Kin-gyo Kaisha underwent a transformation into a limited partnership company. While the management of the limited partnership company initially succeeded, signs of a decline in business appeared from 1896 onwards. Ultimately, the lack of unity between the company’s management and the family businesses of its members led to Kin-gyo Kaisha’s dissolution in 1901.
Despite the company’s failure in management, it was not without significance. The quality control process and silkworm-egg inspections supported the maintenance and expansion of each member’s sales channels. Additionally, the development of joint sales encouraged members to expand their business into the Kansai region. Moreover, Kin-gyo Kaisha’s experiences likely provided valuable insights to later-established silkworm-egg companies in Shiojiri Village.