Economic Action and Social Structure: The Problem of Embeddedness

1985/11/01 by Mark Granovetter · 28,373 citations
Economics, Econometrics and Finance · Social Sciences · #Action (physics) #Business #Economic Theory and Institutions #Economic system #Economics #Embeddedness #Physics #Political Economy and Marxism #Social science #Sociology

paper · doi:10.1086/228311

published in American Journal of Sociology 91(3), 481-510 (University of Chicago Press)

openalex publication_date 1985/11/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/05

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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• The Institutional Entrepreneur as Modern Prince: The Strategic Face of Power in Contested Fields
• Legitimating first: organizing activities and the survival of new ventures
• Embeddedness in context: understanding gender in a female entrepreneurship network
• Business innovation modes in China’s firms: Technological swing and the value of social capital
• Bibliography of sociology [wikipedia]
• Interdisciplinarity [wikipedia]
• Findings from an organizational network analysis to support local public health management. [europepmc]
• Network organizations of general practitioners: antecedents of formation and consequences of participation. [europepmc]
• Sport, and use of anabolic androgenic steroids among Icelandic high school students: a critical test of three perspectives. [europepmc]
• The ties that bind: an integrative framework of physician-hospital alignment. [europepmc]
• An economic analysis of the limits of market based reforms in the English NHS. [europepmc]
• Cooperative behaviour and prosocial reputation dynamics in a Dominican village. [europepmc]
• Embedding health policy and systems research into decision-making processes in low- and middle-income countries. [europepmc]
• Effects of social capital on general health status. [europepmc]
• Hospital-physician relations: the relative importance of economic, relational and professional attributes to organizational attractiveness. [europepmc]
• The Relationship Between Social Support and Subjective Well-Being Across Age. [europepmc]
• Social network properties and self-rated health in later life: comparisons from the Korean social life, health, and aging project and the national social life, health and aging project. [europepmc]
• Social media fingerprints of unemployment. [europepmc]
• Social networks and life satisfaction: The interplay of network density and regulatory focus. [europepmc]
• Social capital and active membership in the Ghana National Health Insurance Scheme - a mixed method study. [europepmc]
• Are You Your Friends' Friend? Poor Perception of Friendship Ties Limits the Ability to Promote Behavioral Change. [europepmc]
• A catalyst for system change: a case study of child health network formation, evolution and sustainability in Canada. [europepmc]
• How institutional forces, ideas and actors shaped population health planning in Australian regional primary health care organisations. [europepmc]
• Analysis of Network Structure and Doctor Behaviors in E-Health Communities from a Social-Capital Perspective. [europepmc]
• Social network and extension service in farmers' agricultural technology adoption efficiency. [europepmc]
• Inequality is rising where social network segregation interacts with urban topology. [europepmc]
• Nursing Students' Subjective Happiness: A Social Network Analysis. [europepmc]
• How Workplace Social Capital Affects Turnover Intention: The Mediating Role of Job Satisfaction and Burnout. [europepmc]
• The experiences of East Asian dementia caregivers in filial culture: a systematic review and meta-analysis. [europepmc]
• The anatomy of a population-scale social network. [europepmc]
• Modelling social norms: an integration of the norm-utility approach with beliefs dynamics. [europepmc]

Related

• Economic Institutions as Social Constructions: A Framework for Analysis
• What is social structural explanation? A causal account
• Social Capital in the Creation of Human Capital
• On the Relational Power of Economics:Economists between Academia, Government, and the Economy. An Introduction.
• CONFLICTS, COMPROMISES, AND THE ECONOMY