A leading firm that controlled a large portion of the output of a given organizational field operated as a price setter. To set prices, the actors in… - Neil Fligstein

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.

In this book Neil Fligstein takes issue with prevailing theories of the corporation and proposes a radically new view that has important implications for American competitiveness.

Organizational and not financial or ownership embeddedness is likely to be a more important cause of actions of firms than anything else in the case of United States. This means efforts should concentrate on specifying models of relations between firms that focus on intra- and interorganizational processes, such as the construction of strategic action and the cultural frames by which such a construction makes sense.