From Anonymity to Identity: Network Transformation in Economies and Industries in Transition from Plan to Market

Martin Johanson, Jan Johanson

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


Perhaps the most striking institutional change over the last 30 years is the transition from some kind of state-governed and planned economy to a more open economic system governed by the market. This development has occurred or is currently occurring in countries that are often labelled transition economies or emerging markets. Included among these countries are China, India and Russia, as well as most other countries in the ‘communist bloc’ in the former Soviet Union, as well as Central and Eastern Europe. Within the market economies of Europe, similar, although less dramatic, changes in the mix between planned and market exchange have been implemented. Industrial sectors, for instance telecom, air transport and energy, have been transformed from plan governance to open market governance through an institutional deregulation. The plans and the associated authorities in planned economies are being abolished, prices are being liberalised and the countries, or the industrial sectors, are moving towards increasingly open market economies. The relative merits and problems of the two modes of coordination of economic life have been analysed and discussed in a number of studies. Coase (1937), Hayek (1945) and Williamson (1975) are examples of scholars who have analysed the plan (hierarchy) versus the market mechanism of economic coordination.
Original languageEnglish
Title of host publicationExtending the Business Network Approach
Subtitle of host publicationNew Territories, New Technologies, New Terms
EditorsPeter Thilenius, Cecilia Pahlberg, Virpi Havila
PublisherPalgrave Macmillan
Number of pages26
ISBN (Electronic)9781137537652
ISBN (Print)9781137537638
Publication statusPublished - 12 May 2016
Externally publishedYes


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