Factors In Economic Sociology

748 Words3 Pages
The third factor is social network - influences economic behavior by offering concrete examples of how to behave and by enforcing sanctions for any misbehavior (chapter 2, Handbook of Economic Sociology). Social network theories was built on Durkheim 's ideas about “how the individual 's position in a social milieu shapes both his behavior and his underlying identity” (chap.2, Handbook). For Durkheim, social networks shape the behavior of human not just in a negative sense, but also in a positive sense of creating acceptable economic behavior sequences. In researching the idea of development of social network, theorists find that societies with powerful social networks have a comparative advantage in process of development. This can be demonstrate…show more content…
The behavior patterns, economic practices, or scripts, are determines how individuals will respond to situations in the future. In other words, behaviors occur through direct social processes in which social networks and power play roles in the economic practices as rational components. The Comparative Method in Economic Sociology For historians, their assumption begins with "history is sufficient to make conclusion," the economic world will definitely mess around with historians. In comparison, modern practices are more efficient than past economic practices according to Economic Sociology: A Systematic Inquiry. In advanced societies are closer to the ideal framework of economy than less advanced societies, and in patterns, the matter of modernization also is a problem of how human transform from Sacramento to New York or how Rome becomes more like America. But if economic sociologist begins with the assumption that “history is not sufficient”, there will be plenty of reasons are left to explain. Economic sociologist have to explain not only why nations vary in modern world in their economic practices, but also why they have variation in multiple paths in the…show more content…
What is special about Granovetter? This is the first time since the nineteenth century, the mainstream economics has begun to analyze economic institutions. Since the 80s, Granovetter has generates a theoretical idea in economic sociology that covered Society and Economy, “The Social Construction of Economic Institutions” (chapter 1, Handbook of Economic Sociology). His own definition of embeddedness is quite general and states that economic actions are "embedded in concrete, ongoing systems of social relations" (chapter 1, Handbook). The essential part of his 1985 article has been connecting the concept of “embeddedness” to a theory of institutions. Drawing on the handbook of economic sociology, Granovetter argues that institutions are "congealed networks", an objective quality that makes people take it for granted. According to Granovetter, economic institutions are characterized by "the mobilization of resources for collective action" (chap.1, handbook). This work is important efforts to be made by economic sociologists as same as by economists, to explore deeper on the discipline of economic behavior in modern economic
Open Document