In evolutionary economics the firm is the sole locus of economic and technological change, and only little is said about the analytical importance of economic relationships. An emerging theme in the fields of economic sociology, however, is the idea that economic activities are embedded in...

In his seminal article Economic Action and Social Structure: The Problem of Embeddedness Granovetter argued that economic action is embedded in social relations and structures that affect its functioning, and that economic action should be analyzed as such. In theories of the business firm the...

Proponents of the knowledge-based approach to the firm argue that organizational economics put all the burden on the allocation of incentives and property rights in the explanation of organizational phenomena, and neglects firm-specific knowledge and processes of learning. We argue that there is...