ABSTRACT
This chapter outlines two alternative ideal—typical models of intercorporate relations, between firms and the political milieu. Business, or market communities share activities and beliefs, there is no need to interact in physical closeness, and individuals and firms' economic action has produced shared obligations and common identities. These communities should not be mistaken for organizational population and organizational fields. Business milieux may be viewed as circumscribed communities that are comprised within the larger business community. Business milieux may not coincide with business groups. Business groups are particular economic groups, which are formed by dense, legally autonomous, corporate networks that are permanently linked by consolidated economic relations, and often by cross holdings. The explanation provided by R. C. Feenstra and G. G. Hamilton considers a variety of factors: refers to the neoclassical economic theory of the general economic equilibrium. A different explanation of economic development in Taiwan and South Korea, drawn from a modified version of dependency theory, has also been put forward.
