Organizational Network Activities for Local Economic Development

Abstract

There has been considerable interest and study of local and regional economic development networks in recent years. Local governments forge informal and formal network ties with a variety of organizations, the most prominent of which are private, private/public development, community/residential, and public. Extant research has examined networks but not the processes of network partner choice and their networking. This research begins to fill these lacunas by empirically examining various explanations for economic development networks and their influence on each of these four types of networking. The findings reveal that the factors shaping network ties in each organization type are different. Except for community/residential organization network ties, local governments’ networking is significantly related to the development incentives that they offer. Network ties with public organizations are related to government structures. Network ties with community/residential organizations are distinguished by their relationships with financial conditions and citizens’ opposition to development. The factors influencing network activities for economic development with organizational types are shaped by the predisposition of each organizational network; thus, the factors promoting local economic development activities and the factors stimulating network activities for local economic development are different.