ABSTRACT
This chapter examines firms and markets among firms as social structures. Firms and markets among firms will be seen as networks of repeated transactions. The firm will be characterized by its internal network of transactions and the market by the transactions connecting different firms to each other. Business relationships in markets connect firms to one another in a network of relationships. Firms need competitive advantage even in situations with severe state restrictions on competition or where there are only a few sellers in the market. The elaboration of a market culture is reflected in the concentration of the growth of firms in an ensemble of industrial sectors transacting relatively intensely with each other, where the firms' cultures are integrated into that market culture. Firms united in network will tend to have a common fate, their entrepreneurship will be correlated, in time and in function.
