In search of a happy medium: How the structure of interorganizational networks influence community economic development strategies

Routes to economic development attract considerable attention among social scientists, policy makers, and community activists. Increasingly, social scientists examine various attributes of communities, their members, and their natural surroundings that facilitate and inhibit economic development. However, few empirical analyses exist that analyze the impact of a community’s network structure on different forms of economic development such as on industrial recruitment and self-development. Using data collected from six communities in Washington State, the impact of a community’s interorganizational network structure on industrial recruitment and self-development is examined. Results suggest that different types of network structures are better suited for different economic development strategies. A certain level of cohesiveness among community organizations and institutions are favorable for implementing self-development projects. However for industrial recruitment, networks that are bridging facilitate more types of economic development. While bonding and bridging network structures appear to be at odds with one another, it is possible for communities to increase both forms of economic development by maintaining a certain level of cohesiveness among subcomponents and increasing the number of organizations that serve as cut-points connecting non-redundant sources of information. These findings illustrate the need for communities and local activists to consider a community’s network structure when deciding on an economic development strategy. © 2007 Elsevier B.V. All rights reserved.