PDF hosted at the Radboud Repository of the Radboud University Nijmegen The following full text is a publisher's version. For additional information about this publication click this link. https://hdl.handle.net/2066/222292 Please be advised that this information was generated on 2021-09-28 and may be subject to change. Neither new, nor heterarchic. Inter-organizational networks throughout the history of the Dutch paper and board industry Martha Emilie Ehrich Niet nieuw, niet heterarchisch. Interorganisatorische netwerken in de geschiedenis van de Nederlandse papier- en kartonindustrie Proefschrift ter verkrijging van de graad van doctor aan de Radboud Universiteit Nijmegen op gezag van de rector magnificus prof. dr. J.H.J.M. van Krieken, volgens besluit van het college van decanen in het openbaar te verdedigen op donderdag 1 oktober 2020 om 11.30 uur precies door Martha Emilie Ehrich geboren op 27 juli 1989 te Lüneburg, Duitsland Promotor: Prof. dr. H. L. van Kranenburg Copromotor: Dr. A. Wigger Manuscriptcommissie: Prof. dr. R. ten Bos Dr. L. Horn, Roskilde Universiteit, Denemarken Prof. dr. D.K. Mügge, Universiteit van Amsterdam Neither new, nor heterarchic. Inter-organizational networks throughout the history of the Dutch paper and board industry Doctoral Thesis to obtain the degree of doctor from Radboud University Nijmegen on the authority of the Rector Magnificus prof. dr. J.H.J.M. van Krieken, according to the decision of the Council of Deans to be defended in public on Thursday, October 1, 2020 at 11.30 hours by Martha Emilie Ehrich born on July 27, 1989 in Lüneburg, Germany Supervisor: Prof. dr. H. L. van Kranenburg Co-supervisor: Dr. A. Wigger Members of the Manuscript Committee: Prof. dr. R. ten Bos Dr. L. Horn, Roskilde University, Denmark Prof. dr. D.K. Mügge, University of Amsterdam RAGS make paper, PAPER makes money, MONEY makes banks, BANKS make loans, LOANS make beggars, BEGGARS make RAGS. - Author unknown, around eighteenth century Cover design: own illustration Printing: paper jam || the people of the radical Amsterdam-based printing collective paper jam seek to perform an infrastructural task to support our revolutionary struggle || paperjamcollective.nl This book is printed on 100% recycled paper © Martha Emilie Ehrich 2020 This thesis is no copyright material as I am against the commodification of knowledge; feel free to publish any quotation from it with or without (im)proper acknowledgement. – this page is intentionally left blank – To Vick - you know why – this page is intentionally left blank – Table of Contents ACKNOWLEDGEMENTS I LIST OF FIGURES II LIST OF TABLES III CHAPTER I – INTRODUCTION 1 1.1 The significance of state-industry and capital-labor relations for inter-organizational networks 8 1.2 The significance of technology as well as competition and cooperation for inter-organizational networks 17 1.3 Inter-organizational networks as historical geographies of concrete cases 27 1.4 Structure of the dissertation 33 CHAPTER II – METHODOLOGY 39 2.1 Dialectical network analysis 39 2.2 The historization of inter-organizational networks in the Dutch paper and board industry based on secondary literature analysis 44 2.2.1 First level: Theorization based on four phases of capitalism 47 2.2.2 Second level: The politico-economic context of the Netherlands 51 2.2.3 Third level: The Dutch PBI throughout time 55 2.3 Supplementing the historization of inter-organizational networks in the Dutch paper and board industry with primary qualitative data 57 2.3.1 Gaining access to the field 59 2.3.2 Semi-structured interviews 63 2.3.3 Participatory unstructured observation 67 2.3.4 Analysis technique: Diffractive reading 69 2.4 Analyzing the most recent case of inter-organizational networks in the Dutch paper and board industry based on primary quantitative data 71 2.4.1 Description of the dataset 74 2.4.2 Analysis technique: Visualizing network brokerage 79 2.5 Concluding remarks 84 CHAPTER III – HISTORICIZING INTER- ORGANIZATIONAL NETWORKS OF THE DUTCH PAPER AND BOARD INDUSTRY (1580 – 1980) 85 3.1 The rise of Dutch capitalism: Networked capital (1580- 1815) 87 3.1.1 Technology: Early paper making in the Northern Lowlands 89 3.1.2 State-industry relations: Growing capital networks 92 3.1.3 Competition and cooperation: Overcoming competition through fire insurances 100 3.1.4 Labor-capital relations: Revolts under state monopoly capitalism 106 3.1.5 The denouement of Dutch capitalism: Economic devastation under political isolation 112 3.2 Dutch monarchic liberalism: Building Industria through networks (1815-1914) 115 3.2.1 State-industry relations: Rise of gentlemanly capitalists and the Dutch PBI 119 3.2.2 Technology: A new paper production process and the subsequent search for innovative fibers 124 3.2.3 Competition and cooperation: Highly industrialized paper and board industries 128 3.2.4 Labor-capital relations: Modern labor exploitation on the rise 139 3.2.5 The denouement of monarchic liberalism: Industria – unsuccessful in boosting international competitiveness 143 3.3 Fordism: Networks fostering concentration and corporatization (1914-1980) 146 3.3.1 Interim war period 1914-1945 148 3.3.2 State-industry relations: Consolidation in the Dutch PBI 153 3.3.3 Competition and cooperation: Cartels in the Dutch PBI 156 3.3.4 Technology: Innovative waste paper usage in the Dutch PBI 164 3.3.5 Labor-capital relations: The rise and fall of unions 166 3.3.6 The denouement of Fordism: When endless growth still seemed possible 171 3.4 Concluding remarks 173 CHAPTER IV – THE DUTCH PAPER AND BOARD INDUSTRY’S INTER-ORGANIZATIONAL NETWORKS DURING POST-FORDISM (1980 UNTIL NOW) 178 4.1 State-industry relations: Industrial policy during post- Fordism 185 4.1.1 The effects of deregulation, re-regulation, privatization and flexibilization on the Dutch PBI in the 1980s 186 4.1.2 The effect of transnationalization, financialization and deindustrialization on the Dutch PBI during the 1990s 193 4.2 Competition and cooperation: Inter-organizational networks substitute cartels 196 4.2.1 The establishment of the KCPK and its coevolution with the NMa 200 4.2.2 The privatization of the KCPK and the formation of Bumaga 204 4.2.3 Local and national cooperation in light of global competition 208 4.3 Technology: Worldwide rising scales and the search for circular economies 217 4.3.1 Circular economy or economic versus ecological sustainability 220 4.4 Labor-capital relations: New forms of precarity and the managerial middle-class 224 4.4.1 The decreasing importance of unions despite the re-production of precarious working conditions 225 4.4.2 The rise of the managerial middle-class 231 4.4.3 Racialized economies during post-Fordism 236 4.5 Concluding remarks 243 CHAPTER V – POWER IN THE CURRENT INTER- ORGANIZATIONAL NETWORK OF THE DUTCH PAPER AND BOARD INDUSTRY 250 5.1 The KCPK network’s evolution 252 5.2 Rising power asymmetry: A few brokers dominating the KCPK network 260 5.3 Transnational corporations as powerful core-brokers 272 5.4 Concluding remarks 286 CHAPTER VI - CONCLUSION 292 6.1 Findings 296 6.1.1 State-industry relations 297 6.1.2 Labor-capital relations 300 6.1.3 Competition and cooperation 303 6.1.4 Technology 305 6.2 Discussion of findings for the future of the industry 308 6.3 Contribution to management network research 311 6.3.1 Network governance research 312 6.3.2 Innovation, trust and performance research 315 6.3.3 Longitudinal network research 316 6.4 Reflections on this research and suggestions for future research 318 6.5 In retrospect 322 APPENDICES 323 Appendix 1: Guideline for Semi-structured interviews 323 Appendix 2: Memo for Interviewee 5 / 24.03.16 325 Appendix 3: Memo of Circular Economy conference - 03.02.16 331 Appendix 4: Memo of Science meets Industry conference - 02.02.16 339 Appendix 5: List of companies of the Dutch PBI (2011- 2018) 348 REFERENCES 349 SUMMARY 411 SAMENVATTING (SUMMARY IN DUTCH) 413 ABOUT THE AUTHOR 416 Acknowledgements Acknowledgements This work would have never seen the light of day without my co-supervisor, Angela Wigger. Without your fierce spirit, deeply supportive involvement and endless encouragement this work would have ended up unfinished in a drawer. Thank you for being a great role model to me and surely others for what it means to stay political within and beyond academia. I also want to thank Hans van Kranenburg for staying on board of this research project enthusiastically and supportively throughout the entire time. In addition, I want to grant thanks to the Hogeschool Arnhem en Nijmegen for co-financing this project. Thank you Saoradh and Daniel for proof-reading this lengthy piece and for your honest friendship. Thank you Tjerk for sticking around and having my back at the hardest of times during this process. Thank you, Elise, Louise and Leander for listening over and over again and for reminding me that there is more to life than doing a PhD. Thank you Bootsmann, for without you these past years would have not made sense. At last, I want to thank Simon, who surely carried a big part of this work. You always sustain a life of bliss and ardency, I am grateful to be part of. i List of figures List of figures Figure 1 Estimated share of raw material in Dutch paper production in the end of the 19th century Figure 2 Number of paper mills in the Netherlands during the 19th century Figure 3 Paper mills in the Netherlands in 1848 and in 1903 Figure 4 Production of paper and board in tones in the Netherlands, 1921-1952 Figure 5 Cartel agreements in the Netherlands, selected