Capitalism, Social Institutions of
Abstract
The concept of capitalism refers to the idea that societies should allow economic actors to rationally organize the social and financial capital at their disposal in pursuit of perpetually renewed profits (Weber 1989: 17ff). The particular organizational forms with which actors have chosen to organize economic transactions vary considerably, but an oft-used classification distinguishes between formal organizations, markets for the exchange of commodities and capital goods, and organization-market “hybrids” like interorganizational networks and alliances. As these organizational forms represent the core engines of production and exchange of consumer and capital goods in capitalist societies, these three discrete structural alternatives are typically referred to as the economic institutions of capitalism (Williamson 1985).