How Do Fields Change? The Interrelations of Institutions, Networks, and Cognition in the Dynamics of Markets

TLDR

Sociological economics identifies social networks, institutions, and cognitive frames as key structures, and emphasizing their complex interplay reveals innovative opportunities hidden by single‑structure analyses. The article develops an integrated framework that examines how the interrelations among networks, institutions, and cognition drive market dynamics. By simultaneously incorporating networks, institutions, and cognitive frames, the field concept shows how actors leverage resources from one structure to reshape others in pursuit of their goals.

Abstract

Sociological approaches to the economy identify three types of social structures relevant for the explanation of economic outcomes: social networks, institutions, and cognitive frames. This article contributes to the development of a framework which aims at an integrated perspective on the social structuring of markets and their dynamics. Based on the field concept, the article discusses the interrelations between the three types of structures as a source of the dynamics of markets. Bringing the complex and possibly contradictory character of the different social structures to the center of attention highlights spaces for innovation which are anchored in the social organization of markets but remain obscure in approaches that focus on only one of the structures. The simultaneous inclusion of social networks, institutions, and cognitive frames makes it possible to address how actors employ resources gained from one of these structures in the field to reconfigure other parts of the social structure in a way favorable to their goals.