The Organization of Market Boundaries

In contrast to the main focus on market boundaries as spontaneous orders, this article investigates how and why market boundaries are ordered through organization. It proposes three elemental ordering processes – mutual adaptation, institutions, and organization – to conceptualize individual market boundary formation. Based on a longitudinal study of a financial market, the organization of both market demarcations and boundary constitution is analysed. It is illustrated how boundaries were subject to much organization and reorganization, to protect the market’s legitimacy and function. Explanations for the use of market boundary organization suggestively stem from both boundary competition and complementarity – to replace or reinforce boundaries formed by other ordering processes, in order to direct market content.