Firms & Networks

I’m reading “The Architecture of Markets: An Economic Sociology of Twenty-First-Century Capitalist Societies” by Neil Fligstein.
I’m a fan of what might be called the “network theory of firms” – e.g. that a firm can be usefully modeled as a node in a network of linkages to other entities in the economy. The theory gets interesting when you begin to classify the kinds of links and their attributes.

Fligstein provides a nice enumeration of some of the attributes of these linkages.

“Networks usually are a stand-in for other sociological variables such as resource dependence, power, often ownership, information, trust, or status.”

This is a wonderful book. If books were meals then Barabasi’s book Links would be a salad and this book would be beef stew.

The sentence actually reads: “Networks usually are a stand-in for other sociological variables such as resource dependend (Burt 1983), power, often ownership (Mizruchi, Stearns, and Brewster 1988, Lincoln, Gerlach, and Takahashi, 1992; Palmer et al. 1995), information (Davis and Stout 1992), trust (Uzzi 1996), or status (Podolony 1993).” but…

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