Economic transactions are governed by their embeddedness in social networks

Evidence

The second premise of our paper is the conviction that, in order to understand people’s behavior in organizations, itis essential to consider the social context within which that behavior is embedded (Salancik and Pfeifer 1978). According to the embeddedness perspective (Granovetter 1985), economic transactions are rooted in social structures formed by social ties among actors, which set the terms of exchange within networks. — TOMASZ OLEJNICZAK, Development of Trust in Low-Trust…, 17

Categorization

• DEFINE: Crisp statement of the embeddedness (Granovetter) perspective — social ties set terms of exchange within networks.
• XREF: Directly reinforces the reader’s interpretive frame for Wharton’s novel: reputation and social ties set the terms of exchange in 1870s New York. — connects to: Social structures carry history and continuity that independently affect economic systems — Coleman, SocialCapitalCreation-1988, 29; Economic institutions depend on personal networks that generate trust and enforce norms — Coleman, SocialCapitalCreation-1988, 28; Social capital exists as obligations, information flows, and sanctioned norms — Coleman, SocialCapitalCreation-1988, 236 (+10 more)

Related

• Economic institutions depend on personal networks that generate trust and enforce norms (similarity 0.85)
• Markets manifest a third embeddedness type beyond relational and structural forms (similarity 0.85)
• Social relations are sufficient but not necessary conditions for trust in economic life. (similarity 0.84)
• Social structures carry history and continuity that independently affect economic systems (similarity 0.84)
• Trust in economic life arises from social relations rather than morality or institutions alone. (similarity 0.83)
• Trust can arise even when transactions are not embedded in social relations. (similarity 0.82)
• Social networks themselves constitute capital with measurable productive value (similarity 0.81)
• Economic transactions are embedded in complex moral relations, not just rational numbers (similarity 0.81)
• Economics influenced markets through personal networks, not impersonal persuasion alone. (similarity 0.81)
• Relational network-based informal institutions tend toward closure and block generalized trust. (similarity 0.79)
• Global markets are assembled through microsocial patterns of relatedness and coordination (similarity 0.79)
• In low-trust societies commerce stays confined within family and friend circles. (similarity 0.78)

Broader Connections

• Economic institutions depend on personal networks that generate trust and enforce norms #expands (0.95) — Coleman, SocialCapitalCreation-1988, 28
• Social structures carry history and continuity that independently affect economic systems #corroborates (0.92) — Coleman, SocialCapitalCreation-1988, 29
• Social capital exists as obligations, information flows, and sanctioned norms #expands (0.85) — Coleman, SocialCapitalCreation-1988, 236