HallSoskice

The authors analyze the firm as relational in nature and thus run into many coordination problems. A firm thus seeks to succeed by overcoming these problems by coordinating with a number of actors.

Institutions are important in the analysis of hall and Soskice as they provide firms support to resolve coordination difficulties.

They identify two varieties of market economies. In liberal market economies competitive market arrangements help coordination of firm activities. In coordinated market economies, non-market relationships enable firms to coordinate their activities with actors they deal with. Collaborative techniques help solve coordination problems.