Taking Firms Seriously as Economic Actors: Towards a Sociology of Firm Behaviour

Abstract

The growth of large firms controlling and coordinating a wide range of resources and economic activities means that they have become significant economic actors whose choices and activities make a difference to economic outcomes. Three major sets of issues are raised here. First, the actions of firms are interdependent and collectively determine market behaviour. Thus, firms have to be taken seriously as quasi- autonomous economic agents whose actions are not determined by particular market logics, but together constitute market 'forces' which subsequently affect perceptions and choices. Second, as significant economic actors, the organization and operating procedures of firms become important in understanding overall patterns of resource combination and use. Third, the processes by which firms with particular characteristics become significant economic actors controlling substantial resources require elucida tion. This leads to the consideration of general social processes and structures and, in particular, to how economic power relations structure firm behaviour. Additionally, interdependencies between firms and other political-economic agencies have become more important and raise questions about the appropriate level of analysis for understanding firm behaviour.