List of Tables ixList of Figures xiAcknowledgments xiiiPrologue xviiCHAPTER 1: Social Foundations of the Economy 1The Argument 2A Social-Constructivist Perspective on Economic Organizationand Action 8The Empirical Case: Foreign Direct Investment inPostsocialist Europe 16CHAPTER 2: From Socialism to Postsocialism 29Socialism 30Challenges of the Transformation: Shock Therapy versusGradualism 43The Context of Transformation 46Conclusion 64CHAPTER 3: Institutionalization of FDI in Postsocialism 65FDI as Instituted Process 66Legitimization of FDI Practice 70FDI Trends since 1989 88Explaining FDI Inflows across Countriesover Time 91How Postsocialist States Create Markets 99Conclusion 101CHAPTER 4: Cross-Country Patterns in FDI Flows 103From Country Characteristics to Relations between Countries 104Social Relations as Determinants of FDI Flows 111Embeddedness and Globalization 126Conclusion 130CHAPTER 5: Embeddedness of Organizational FDI Attempts 131Invested Transactions: The Intricacies of FDI Attempts 131What Determines FDI Transactions? 143Network Embeddedness 145Cultural Embeddedness 149Political Embeddedness 155Macro-Institutional Embeddedness 159Embeddedness: Structures-Power-Culture Configurations 162Conclusion 166CHAPTER 6: Uncertainty and the Practice of FDI Transactions 168Rethinking Instrumental Rational Action 169Uncertainty 174Practical Action Model 177Substantive Varieties of Rationality 179Procedural Varieties of Action 181Logic of Decision-Making Practice: Routines, Emotions, Creativity 189Conclusion 194CHAPTER 7: Embedded Economies 196Creation of Markets: From One Kind of Embeddednessto Another 196Operation of Markets: Structures-Power-Culture Configurations 200Varieties of Postsocialist Capitalism 206Conclusion 218Epilogue 221Appendix on Method and Data Sources 223Notes 243References 255Index 291.