Dominant Forms of Economic Organization in Market Economies
The identification of distinctive and effective forms of economic organization in East Asia has emphasized the close connections between dominant social institu tions and ways of co-ordinating economic activities as well as the interrelations between firm and market characteristics in separate business systems. Differences in major institutions thus generate significant variations in how firms and markets are structured and operate. These variations suggest that an important element in the analysis of market economies is the comparison of firm-market relations across institutional contexts. This requires their key characteristics to be identi fied. These can be summarized under three main headings which constitute the components of business systems: the nature of firms as economic actors, the nature of inter-firm relations in markets and the nature of authoritative co ordination and control systems within firms. Thirteen major characteristics form the basic dimensions of business systems, which vary as th...