How Do Bridging and Bonding Networks Emerge in Local Economic Development Collaboration?

Research on network governance of local economic development has mostly focused on consequences of bonding and bridging networks to the neglect of antecedents of these networks. Framing collaboration ties between economic development organizations as social networks, this research presents theoretical arguments for emergence of various forms of bridging and bonding networks and illustrates the theoretical arguments by using collaboration network between economic development organizations engaged in economic development of the city of Priest River in Idaho. The results obtained by fitting exponential random graph models on the economic development collaboration network suggest that bridging networks develop when these organizations, faced with coordination problems in collaboration, engage in search of information or alignment of diverse interests. On the other hand, bonding networks emerge when these organizations, faced with cooperation problems in collaboration, engage in enforcing norms or in maintaining credibility of the commitment.