The relationship between business, the state, and society in transitional economies has been a persistent object of scholarly debate across sociology, economics, and political science. This article offers an integrated theoretical and empirical examination of social networks, institutional power relations, competitiveness, and social responsibility within economic systems undergoing structural transformation. Drawing exclusively on classical and post-Soviet scholarly traditions, the study synthesizes concepts from social anthropology, economic clustering theory, small business studies, and analyses of informal economies to construct a comprehensive analytical framework. Particular attention is given to the role of social networks as embedded structures shaping economic behavior, the interaction between formal and informal institutions, and the evolving dialogue between power and business at regional and national levels. Methodologically, the article employs a qualitative-analytical approach based on comparative theoretical interpretation and contextual reading of established research. The results demonstrate that competitiveness and economic modernization cannot be adequately understood without accounting for informal social ties, gift exchange practices, shadow economic mechanisms, and socially negotiated responsibilities between state and business actors. The discussion critically evaluates dominant economic rationalist perspectives and proposes a socio-institutional interpretation emphasizing trust, dialogue, and networked coordination. The article concludes that sustainable development in transitional economies depends on the institutionalization of social dialogue, the constructive integration of informal practices, and the strategic use of clustering to enhance regional competitiveness.

Social networks, competitiveness, state–business relations

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