Previous literature has shown that the linkage-pattern, based on kinship and native-place, of Chinese merchant groups in nineteenth century failed in promoting trade further expansion as well as modern market transformation. The research focused on the twentieth century had a long debate on the characteristic and the role of merchant groups in China's modernization process with regard to its function in industry. However, two important questions remain vague from the perspective of commodity chains. How did the linkage-pattern change along with the market extension in the new international trade order? What was the effect of this change on the domestic market order? Therefore, this paper further explores these two issues by case studies of merchant groups in silk-weaving industry in Shanghai and in native-cloth industry in Gaoyang.