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.
Proposition 5.1: 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.
Proposition 5.3: The more effective firms' networks are in helping the firms and their stakeholders to acquire control power and resources, the later they reach the point of inflection from relational to marketbased corporate governance.
Proposition 5.4: The more firms are imbedded in their networks, the later they reach the point of inflection from relational to market-based corporate governance.
He makes an initial pass on the virgin ground, discussing the study of international law in the Spanish 19th century, a point of inflection
for international law in Spain and the United States, the silver age of international law in Spain, the Spanish Civil War--inter armas pugnant lege, and noli foras ire: in Hispaniae habitat veritas.