Analysis Of The Practice Of Embeddedness

This paper tries to exhibit, through the research of the economic action of a bus group in L county J province, how the interest-oriented economic act made a loosely connected group change into a closely connected group under the influence of social institution, and how it embeds into the social construction. The process of embedding was exhibited by the description and analysis of the forming and run of K bus group. The process of embedding is also the process of the natural forming of local institution.This paper elucidates the process of the forming and run of K bus group by analyzing the relationship between the members of K bus group and their opponents and the administration, and by analyzing the relationship between themselves. Through the practical analysis of the forming and run of K bus group, this paper explains how economic action embeds into social construction and how it influences social construction. By elucidating the process, we have found that K bus group was formed and keeps run under the influence of market, culture and government administration. Economic action of the members of K bus group is influenced by the interactions of market, government administration and culture, and the outcome of economic action is just the outcome of the interaction. So, the formation of institution can be the result of embedding formally. In fact, the process of embedding incarnates the outcome of the interaction that the market, administration and culture are all involved.At the same time, we have found that, the acts of social individual are not totally based on rationality. They are under the influence of Chinese traditional norms such as friendship, face and guanxi. New norms which emphasize both interest and traditional ethic have come into being. It is this new norms which govern the K bus group members' dealing with the relationships with the administration and market opponents.So, through the analysis of the process of the forming and run of K bus group, we have found that, while economic action is embedded into social construction under the influence of market, government administration and culture, government administration and culture also influence the practice of market through influencing the economic action of social individuals. At the same time, the formation of K bus group embodies that social individuals get organized to deal with market competition and the power of government administration.