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Cited by 28,745Economic Theory and InstitutionsSocial Capital and NetworksCritical Realism in Sociology

Economic Action and Social Structure: The Problem of Embeddedness

Granovetter, Mark·1985·American Journal of Sociology
DOI 10.1086/228311
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Abstract

How behavior and institutions are affected by social relations is one of the classic questions of social theory. This paper concerns the extent to which economic action is embedded in structures of social relations, in modern industrial society. Although the usual neoclasical accounts provide an undersocialized or atomized-actor explanation of such action, reformist economists who attempt to bring social structure back in do so in the way criticized by Dennis Wrong. Under-and oversocialized accounts are paradoxically similar in their neglect of ongoing structures of social relations, and a sophisticated account of economic action must consider its embeddedness in such structures. The argument in illustrated by a critique of Oliver Williamson's markets and hierarchies research program.

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  • Evidence from Chell and Baines (2000) suggests that there are quantitative and qualitative differences between entrepreneurs and non-entrepreneurs and between growth-oriented and non growth-oriented firms in their participation in weak tie networks.

    “Evidence from Chell and Baines (2000) suggests that there are quantitative and qualitative differences between entrepreneurs and non-entrepreneurs and between growth-oriented and non growth-oriented firms (Chell et al., 1991), in their participation in 'weak tie' (Granovetter, 1985) networks.”

    From ‘Relationships Mean Everything’; A Typology of Small–Business Relationship Strategies in a Reflexive Context (2002) · cites this paper as Granovetter, 1985

  • Our evidence shows that deterministic theory, from either an atomized or over-socialized perspective, is inadequate in explaining the actions of owner-managers of small firms, and that our work contributes to a greater understanding of differences in behaviour.

    “We suggest that our evidence shows that deterministic theory, from either an atomized or over-socialized perspective (see Granovetter, 1985), is inadequate in explaining the actions of owner-managers of small firms, and that our work contributes to a greater understanding of differences in behaviour.”

    From ‘Relationships Mean Everything’; A Typology of Small–Business Relationship Strategies in a Reflexive Context (2002) · cites this paper as Granovetter, 1985

  • Behavior-oriented definitions of collaboration originate partly on the embeddedness approach critique of early transaction cost economics in explicating governance.

    “In terms of theory, these behavior-oriented definitions of collaboration originate partly on the embeddedness approach critique of early transaction cost economics (TCE) in explicating governance (Granovetter, 1985;Powell, 1987).”

    From Collaboration, Coordination, and Cooperation Among Organizations: Establishing the Distinctive Meanings of These Terms Through a Systematic Literature Review (2020) · cites this paper as Granovetter, 1985

  • The TCE approach and the social embeddedness perspective have had a central role in framing most definitions of cooperation that focus on attitude.

    “The TCE approach (Williamson, 1979(Williamson, , 1991) ) and the social embeddedness perspective (Granovetter, 1985) have had a central role in framing most definitions of cooperation that focus on attitude.”

    From Collaboration, Coordination, and Cooperation Among Organizations: Establishing the Distinctive Meanings of These Terms Through a Systematic Literature Review (2020) · cites this paper as Granovetter, 1985

  • The second reason argues that opportunities to form links tend to reflect prior patterns of inter-firm relationships.

    “The second argues that opportunities to form links tend to reflect prior patterns of inter-firm relationships.”

    From Networking and innovation: a systematic review of the evidence (2004) · cites this paper as Granovetter, 1985

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Authors
Granovetter, M.
Corresponding author
Granovetter, Mark
Venue
American Journal of Sociology
Publisher
University of Chicago Press
Published
1985-11
Volume
91
Issue
3
Pages
481-510
ISSN
  • 0002-9602 (ISSN-L)
  • 1537-5390
DOI
10.1086/228311
OpenAlex
W3022339544
Cited by
28,745
References
0
Citations by year
2026: 996 · 2025: 925 · 2024: 783 · 2023: 987 · 2022: 928 · 2021: 1285 · 2020: 1230 · 2019: 1079 · 2018: 1097 · 2017: 1142 · 2016: 1151 · 2015: 1233 · 2014: 1206 · 2013: 1222 · 2012: 1343
FWCI
84.24
Type
journal article
Language
en
Open access
closed
Locations
American Journal of Sociology (publishedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Theory and Institutions
  • Social Sciences › Sociology and Political Science › Social Capital and Networks
  • Social Sciences › Sociology and Political Science › Critical Realism in Sociology
Keywords
embeddedness, economic action, social structure, interpersonal relationships, atomism, neoclassical economics, Oliver Williamson, modern industrial society, institutional economics

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