3: The relationship between a firm's ability to influence the state and the length of time until it confronts the point of inflection from bureaucratic control-based to relational governance is moderated by the benefits of being associated with the state.
4: The sooner a firm can operate independently, the earlier it will reach the point of inflection from bureaucratic control-based to relational corporate governance.
Stakeholders' and firms' dominant providers of power and resources will shift from networks to the market, driving firms to the point of inflection between relational and market-based governance.
In sum, the evolution of a market institutional framework facilitates a shift in the dominant sources of inputs and control power from networks to the market, driving the firm to the point of inflection from relational to market-based corporate governance.
1: Firms arrive at the point of inflection from relational to market-based corporate governance when their dominant sources of control power and resources change from those associated with networks and social relationships to those associated with the market.
Factors influencing the timing of the point of inflection include the rate of development of competition in a firm's market, the effectiveness of the firm's networks, and the extent to which the firm is imbedded in these networks.
2: The sooner firms are influenced by market institutions and competition, the earlier they reach the point of inflection from relational to market-based governance.