Social Embeddedness

Social embeddedness refers to how individuals and businesses are rooted in social networks and relationships that influence their behavior and decisions. It emphasizes that economic actions are shaped by social interactions, cultural norms, and trust within communities. For example, a local business might thrive due to strong connections with customers and other local enterprises, rather than just focusing on profit alone. This concept highlights the importance of social ties and shared values in economic activities, suggesting that our actions cannot be fully understood in isolation from the social contexts we inhabit.