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The contributors to this volume challenge the assumptions of classical business economics about the universal nature of the firm. They show how the embeddedness of firms in the larger societal context of nations impacts on their ability to adjust to the current forms of international competition. The key theoretical approach highlighted in this book is the concept of a "business system" as defined by Richard Whitley and his associates. This book begins with an elaboration of this approach in a paper by Richard Whitley. The remaining papers critically assess this approach, both theoretically and empirically.