Invigorating the content in social embeddedness: an ethnography of life insurance transactions in China

Based on more than 14 months' ethnographic research in China, this article brings in culture and symbolic interactionism to understand the social embeddedness of economic transactions. First, an analytic frame linking tie strengths to defining principles, relational properties, and interactions is constructed and applied to changes in life insurance transactions in China. The data suggest that strong tie transactions were common until the economic gains of the sellers were made public. The author argues that the ethical-affective principle that defines strong ties and the high intensity of trust, affection, and asymmetric obligation that constitute these ties make them a double-edged sword for economic transactions. Instead, ties with midrange or weak strength are more effective because of their relational complementarity (although direct economic exchanges may take place among strong ties under extreme institutional or contingency conditions). The author also reveals that dramaturgical interactions, through which economic actors exercise their agency, are an integral part of embedded transactions.