The forms of social organization produced the market, not the reverse... Instead of markets calling forth efficient forms of social organization, pol… - Neil Fligstein

Initial formation of policy domains and the rules they create affecting property rights, governance structures, and rules of exchange shape the development of new markets because they produce cultural templates that determine how to organize in a given society.

The key argument is that managers and owners in firms search for stable patterns of interaction with their largest competitors. Once stable patterns prove to be both legal and profitable, firms set up organizational fields that tend to produce and reproduce those patterns.

The experiences of the war changed both Baruch’s and Wilson’s attitude toward the large firm. Following the war their anti-firm rhetoric was replaced with praise for the large firm’s patriotism and contribution to progress.