The Coordination of Relations Across Organizational Boundaries

This article discusses the shortcomings of the orthodox economic view on interorganizational relationships and suggests utilizing genuine sociological theory to gain a more realistic and elaborate understanding of the coordination of economic actors' behavior. The role of trust and power in business relationships is examined, and, with reference to these phenomena, it is shown that original sociological approaches (such as systems theory, structuration theory, and new institutionalism within sociology) can provide a major input to the analysis of the social dynamics and environmental influences that determine the nature and quality of economic transactions occurring in interorganizational settings