Interorganizational Collaboration Networks in Economic Development Policy: An Exponential Random Graph Model Analysis*

Regional economic development competition can be inefficient and destructive because decisions by one governmental unit can impose both externalities on its neighbors. Collaborative networks of multiple stakeholders within and across jurisdictions are an increasingly crucial component of regional economic development. In this article, we focus on the emergence of voluntary and self‐organizing network relationships among local governments to address economic development concerns. The motivations and decisions of local actors play a critical role in shaping and implementing regional collaboration. On a micro level, the collaboration choices are shaped by three primary factors: the transaction costs reflected in the configuration of relationships in which an actor is embedded; the organizational similarities (homophily); and the resource dependencies that shape the local actors' preferences for forming relationships with other specific actors. We utilize an exponential random graph model (ERGM) to test hypotheses regarding the most prominent observed patterns of network relationships within and across different organizational sectors. The results demonstrate that both reciprocity and social clustering structures are preferred by both government and nongovernment organizations. These results suggest that interorganizational collaboration for economic development requires more than simple exchange relationships. Rather, network actors may be better served by participating in a densely clustered network that is capable of maintaining credible commitments to collective solutions.     

Micro‐Level Interpretation of Exponential Random Graph Models with Application to Estuary Networks

The exponential random graph model (ERGM) is an increasingly popular method for the statistical analysis of networks that can be used to flexibly analyze the processes by which policy actors organize into a network. Often times, interpretation of ERGM results is conducted at the network level, such that effects are related to overall frequencies of network structures (e.g., the number of closed triangles in a network). This limits the utility of the ERGM because there is often interest, particularly in political and policy sciences, in network dynamics at the actor or relationship levels. Micro‐level interpretation of the ERGM has been employed in varied applications in sociology and statistics. We present a comprehensive framework for interpretation of the ERGM at all levels of analysis, which casts network formation as block‐wise updating of a network. These blocks can represent, for example, each potential link, each dyad, the out‐ or in‐going ties of each actor, or the entire network. We contrast this interpretive framework with the stochastic actor‐based model (SABM) of network dynamics. We present the theoretical differences between the ERGM and the SABM and introduce an approach to comparing the models when theory is not sufficiently strong to make the selection a priori. The alternative models we discuss and the interpretation methods we propose are illustrated on previously published data on estuary policy and governance networks.     

Collaboration and Culture: Organizational Culture and the Dynamics of Collaborative Policy Networks

This paper presents a theory of the role of culture in collaborative policy networks. It builds on the literature that analyzes the factors related to the formation, maintenance, and dissolution of collaborative arrangements by demonstrating the importance of hitherto undertheorized cultural factors. Cultural theory indicates that actors with different cultural viewpoints have distinct and predictable biases in terms of their expectations of collaboration and their preferences concerning how collaborative policy networks are structured. These biases, in turn, shape how collaborative partners are chosen and how collaborative relationships are maintained over time. The theory is illustrated with a case study of the rise and dissolution of a coalition within a housing policy network in Los Angeles. The case illustrates that cultural differences can impede collaboration even when organizations share similar policy goals.     

Ideology,Power, and the Structure of Policy Networks

This article investigates the role of power and ideology in the endogenous formation of policy networks. According to the Advocacy Coalition Framework (ACF), shared ideology (conceptualized as a system of policy‐relevant beliefs and values) is the primary driver of collaboration within policy subsystems. On the other hand, Resource Dependency Theory suggests that power‐seeking is an important rationale behind network structure, and that collaborative ties are formed primarily on the basis of perceived influence. Hypotheses are tested using a new method of egocentric network correlation, based on survey data of policy networks in five regional planning subsystems in California (N = 506). Results suggest that ideology is an important force behind network cohesion: Not only do policy elites systematically avoid networking with ideologically dissimilar actors but collaborative ties are also systematically formed among actors with shared beliefs. Power‐seeking does not operate on a network‐wide scale but may drive network formation among coalitions of ideologically similar agents.     

Putting People Back into Networks

This article argues that political scientists should spend more time observing policy networks, using ethnographic tools to capture the meaning of everyday activities. The first section reviews briefly the literature on policy networks, arguing for an ethnographic approach. To show how individual actors construct networks, the second section looks at the experience of consumers, managers and permanent secretaries of living and working in networks. The final section comments on what the fieldwork tells us about both network theory and ethnographic methods.     

The spatiality of trust in EU external cross-border cooperation

This paper argues that effective cross-border cooperation (CBC) networks closely interrelate with the building of ‘trust’ between actors. The aim is to contribute to the CBC literature by investigating the different forms of trust, their spatial attributes and impact on actor relations in the context of the Finnish–Russian European Neighbourhood Instrument (ENI) of CBC. The paper applies a specific spatial approach by identifying the territorial and relational aspects of four different forms of trust: rational-personal decisions, social-cultural understanding, general-personal interactions and the historical–institutional environment. The analysis, based on policy documents and semi-structured interviews with relevant Finnish ENI CBC actors, shows that the study of transnational cooperation networks benefits from a conceptualization of trust recognizing its spatial characteristics. The study concludes that sub-national actors are key agents in the formation and maintenance of trust. These actors negotiate with socio-cultural differences through the development of personal relationships which increase social capital in the actor–network. However, the cooperation network is vulnerable towards geopolitical circumstances affecting foreign relations. The paper demonstrates that Finnish ENI CBC actors are operating in a transnational network in which their activities are challenged by territorial constraints such as national border-crossing regulations.     

Multiplex Network Analysis for Complex Governance Systems Using Surveys and Online Behavior

Text analysis, web scraping, and other computational techniques enable policy network researchers to efficiently obtain objective measures of network connections. However, the extent to which these observational methods differ from traditional survey instrument‐based measures remains an open question. Focusing on a large regional policy network of 221 organizations, this study compares a measure of collaboration generated via survey instrument to two different measures based upon internet hyperlinks and Twitter interactions between network actors. We address two questions: (1) To what extent do objective network measures based upon observed online interactions and subjective measures based upon self‐reported relationships reveal the same inter‐organizational partnerships and structural network dynamics? and (2) How useful are online network measures for supplementing survey‐based network measures? We find a significant, but substantively small, correlation between survey‐based measures and online interactions. Thus, online network measures may complement survey‐based measures, but likely reflect different aspects of the overall policy network. We conclude by discussing the potential for multiplex measures of policy networks that draw upon multiple measures to more fully understand policy network landscapes. These results bridge and help to contextualize prior work on policy network measures and virtual policy networks within the broader context of complex governance systems.     

Participation and Political Influence in Complex Governance Systems

Public policy generally emerges from interactions among actors embedded within complex governance systems, composed of multiple actors and forums (issue‐based arenas where stakeholders repeatedly interact to resolve collective action problems). Such systems allow actors multiple forums wherein they can influence policy decisions. But actors do not value the decisions made in each forum equally, and it remains unclear how actors allocate resources across forums. This article links actor strategy to their influence within the forums the actors identify as most important (their primary forum). There is theoretical ambiguity about how actors invest their limited resources across the forums that affect their interests to maximize primary forum influence. Do they concentrate all their effort within the primary forum or participate more broadly? To answer this question, we offer two competing theories. First, broad participation may allow actors to develop political capital necessary to influence other actors and thus influence primary forum policies. The second approach notes the opportunity costs of broad participation—actors have fewer resources to invest in their primary forum. An analysis of stakeholder participation in the Sacramento–San Joaquin River Delta and Tampa Bay Watershed governance systems demonstrates that broader participation is associated with greater primary forum influence.     

Bridging and Bonding Capital in Two‐Mode Collaboration Networks

Public management and policy scholars have empirically demonstrated that in complex policy arenas, governments depend on the collaboration of policy actors outside their direct control to produce needed goods and services. Government‐sponsored shared‐cost programs are one of the premier mechanisms to foster such cooperation, yet little is known about the inner patterns of participation in such programs and whether they are conditional on specific resource needs that partners may have. In this article, I study the participation of organizations in projects seeking funds from the Cooperative Funding Initiative, a program sponsored by the Southwest Florida Water Management District that finances projects dealing with the management of water resources. Through the estimation of a series of Exponential Random Graph Models in the networks that form when organizations participate in projects (two‐mode networks), I show that centralization around popular organizations results in greater bridging network capital, which facilitates the flow of nonoverlapping information from project to project. I analyze the implications of these findings and discuss how the formation of these bridging structures may enhance the capacity of the program to find innovative solutions to the problems the projects are designed to deal with.     

Collaborative Networks for Effective Ecosystem‐Based Management: A Set of Working Hypotheses

Ecosystem‐based management (EBM) represents a comprehensive approach to better govern the environment that also illustrates the collaborative trend in policy and public administration. The need for stakeholder involvement and collaboration is strongly articulated, yet how and for what purposes collaboration would be effective remains largely untested. We address this gap by developing and evaluating a set of hypotheses specifying how certain patterns of collaborations among actors affect their joint ability to accomplish EBM. Content analyses of management plans drawn from five EBM planning processes in Sweden are combined with analyses of the collaborative networks through which these plans have been developed. Our results indicate that system thinking and the ability to integrate across different management phases are favored by collaborations between different kinds of actors, and by project leaders being centrally located in the networks. We also find that dense substructures of collaboration increase the level of specificity in the plans in regards to explicating constraints on human activities. Having many collaborative ties does however not enhance the overall level of specificity. Our results also show that different network characteristics can give rise to similar EBM outcomes. This observed equifinality suggests there is no single blueprint for well‐performing collaborative networks.     

Relinquishing nuclear weapons: identities,networks and the British bomb

Recent analysis on the prospects for achieving a world free of nuclear weapons has tended to focus on a set of largely realist strategic security considerations. Such considerations will certainly underpin future decisions to relinquish nuclear weapons, but nuclear disarmament processes are likely to involve a more complex mix of actors, issues and interests. The article examines this complexity through a sociological lens using Britain as a case‐study, where relinquishing a nuclear capability has become a realistic option for a variety of strategic, political and economic reasons. The article examines the core ideational and organizational allies of the UK nuclear weapon ‘actor‐network’ by drawing upon social constructivist accounts of the relationship between identity and interest, and historical sociology of technology analysis of Large Technical Systems and the social construction of technology. It divides the UK actor‐network into three areas: the UK policy elite's collective identity that generates a ‘national interest’ in continued deployment of nuclear weapons; defence–industrial actors that support and operationalize these identities; and international nuclear weapons dynamics that reinforce the network. The article concludes by exploring how the interests and identities that constitute and reproduce the ‘actor‐network’ that makes nuclear armament possible might be transformed to make nuclear disarmament possible. The purpose is not to dismiss or supplant the importance of strategic security‐oriented analysis of the challenges of nuclear disarmament but to augment its understanding by dissecting some of the socio‐political complexities of nuclear disarmament processes.     

Statistical Network Analysis for Analyzing Policy Networks

To analyze social network data using standard statistical approaches is to risk incorrect inference. The dependencies among observations implied in a network conceptualization undermine standard assumptions of the usual general linear models. One of the most quickly expanding areas of social and policy network methodology is the development of statistical modeling approaches that can accommodate such dependent data. In this article, we review three network statistical methods commonly used in the current literature: quadratic assignment procedures, exponential random graph models (ERGMs), and stochastic actor‐oriented models. We focus most attention on ERGMs by providing an illustrative example of a model for a strategic information network within a local government. We draw inferences about the structural role played by individuals recognized as key innovators and conclude that such an approach has much to offer in analyzing the policy process.     

Networks of Adjacent Action Situations in Polycentric Governance

Within the Institutional Analysis and Development (IAD) framework, the concept of an action situation generalizes a game to allow for endogenous changes in its rules. This article re‐visits this core concept to explore its potential for serving as the foundation for a systematic approach to the construction of more elaborate models of complex policy networks in which overlapping sets of actors have the ability to influence the rules under which their strategic interactions take place. Networks of adjacent action situations can be built on the basis of the seven distinct types of rules that define an action situation or by representing generic governance tasks identified in related research on local public economies. The potential of this extension of the IAD framework is demonstrated with simplified network representations of three diverse policy areas (Maine lobster fisheries, international development assistance, and the contribution of faith‐based organizations to U.S. welfare policy).     

The Effects of Risk,Beliefs, and Trust in Education Policy Networks: The Case of Autism and Special Education

There are multiple theoretical accounts of how actors address problems of collective action in policy networks, but the two most prominent hypotheses are the risk and belief homophily hypotheses. The risk hypothesis claims that relational structures (e.g., bridging, bonding) depend on the benefits actors receive from uncooperative behavior, while the belief homophily hypothesis claims that relational ties form around shared policy beliefs. This study incorporates the case of autism and special education policy, a subsystem best characterized by Berardo and Scholz's (2010) conceptualization of a low-risk environment, to test hypotheses about the influence of risk, policy beliefs, and trust on the formation on relational ties in education policy networks. Utilizing data from a 2016 network survey of public and private special education stakeholders in Virginia, results from exponential random graph models provide support for the effects of bridging structures, beliefs related to the medical model of disability, and social trust on strong (collaboration) and weak (information/advice) relational ties in policy networks. The findings reinforce the importance of using policy networks to understand how actors build connections across multiple jurisdictions and policy sectors to mitigate problems of coordination in policy decision making and implementation.     

Integration Processes in European Research and Development: A Comparative Spatial Interaction Approach Using Project Based Research and Development Networks,Co‐Patent Networks and Co‐Publication Networks

This study focuses on integration processes in European Research and Development (R&D) by analyzing the spatiotemporal dimension of three different R&D collaboration networks across Europe. The studied networks cover different types of knowledge creation, namely project‐based R&D networks within the European Union (EU) Framework Programmes (FPs), co‐patent networks, and co‐publication networks. Integration in European R&D—one of the main pillars of the EU Science Technology and Innovation policy—refers to the harmonization of fragmented national research systems across Europe and to the free movement of knowledge and researchers. The objective is to describe and compare spatiotemporal patterns at a regional level and to estimate the evolution of separation effects over the time period 1999–2006 that influence the probability of cross‐region collaborations in the distinct networks under consideration. The study adopts a spatial interaction modeling perspective, econometrically specifying a panel generalized linear model relationship, taking into account spatial autocorrelation among flows using eigenfunction spatial filtering methods. The results show that geographical factors are a lower hurdle for R&D collaborations in the FP networks than in co‐patent networks and co‐publication networks. Furthermore, it is shown that the geographical integration is higher in the FP network.     

Partnership Networks for Urban Development: How Structure is Shaped by Risk

In delivering public policy, governments worldwide increasingly partner with diverse sets of stakeholders. This spreads commercial risk, but particularly where agendas diverge, introduces new risks related to trust in relationships. The “risk hypothesis” distinguishes between networks for “cooperation” problems, where partners have high individual payoffs for uncooperative behaviors, and “coordination” problems, where partners subscribe to a common goal and uncooperative behaviors are less rewarding. We used mixed‐methods to study networks of local and state government, developers, and consultants that center on joint‐venture partnerships for developing new urban, residential projects. Statistical network methods showed that within the mix of partners involved in development projects, only state governments displayed structural patterns associated with solving “cooperation” problems (rather than coordination). In other words, the patterns of state government interactions showed they are most exposed to risky relationships. In contrast to the state governments’ apparent exposure to risk, qualitative data showed they are not only well trusted but also overall the partnership networks reported very low levels of conflict. By exploring the distribution of “cooperation” and “coordination,” we identified which stakeholders perceived most risk. In our case, how the state governments’ structure interactions in response to risky relationships leads to an overall network characterized by trust.     

The Performance of Policy Networks: The Relation between Network Structure and Network Performance

The importance of policy networks has long been emphasized within the field of policy analysis. However, few attempts have been made to investigate the explanatory power of policy networks using the tools and theoretical concepts provided by social network analysis (SNA). This paper aims to address this need by determining if a relationship exists between the structural features of policy networks, their organizing capacities, and their performance. A comparative case study of four networks within the higher education policy sector confirms the assumption related to the existence of such a relation. It is proposed that an efficient and innovative policy network consists of a heterogeneous set of actors that are centrally and densely integrated. Furthermore, while the level of network heterogeneity is positively related to the function of resource mobilization in the process of policymaking, the level of centralized integration promotes the function of prioritizing. These findings are believed to contribute to our understanding of policymaking in contemporary society. The current paper indicates that a significant explanatory power exists in the concept of policy networks and that SNA is one way of advancing its possibilities.     

Collective Action Problem Characteristics and Partner Uncertainty as Drivers of Social Tie Formation in Collaborative Networks

The effectiveness of collaboration is often explained by the alignment of social networks with collective-action problem characteristics, yet previous research on social tie formation has focused almost exclusively on actor and relational attributes. We theorize that collective-action problem characteristics together with actor and relational attributes explain social tie formation and that the relative effect of these factors varies with uncertainty about collaboration partners. The study tests seven hypotheses associated with these factors by estimating multilevel network models of collaboration and task engagement among managers responding to a major wildfire in Sweden. The combination of actors and tasks in a single model captured key characteristics of the collective action problem (task engagements and task interdependencies), and disentangled the relative effects of these factors from actor and relational attributes. Results suggest that social tie formation can be explained both by actors’ task engagements, and actor attributes associated with leadership, professionalization, and experience. Further, the effect of task engagements decreases in organizational relationships where collaborative uncertainty is high. Since the alignment of social ties with problem characteristics is supposedly positively associated with collaborative effectiveness, this finding suggests that risk-aversion is a more deep-rooted driver of tie formation than the pursuit of collective performance.     

Mechanisms of Control in Emergent Interorganizational Networks

The delegation of decision‐making capacity from one actor to another—known variously as authority or control—is a central phenomenon of organizational sociology. Despite its theoretical and practical significance, however, the dynamics of control within disrupted settings (such as disasters) remain poorly understood. Here, we shed light on this question by a reexamination of historical data on multiorganizational disaster response networks, using recently developed statistical methods for robust inference from error‐prone informant reports. Specifically, we test competing hypotheses about the relationship of control during the response process to the structure of interorganizational communication. We find that both the realized and normative response hierarchies are likely shaped by coordination among both nonadjacent alters and along indirect channels. Our results suggested that the communication structure of these networks is consistent with a control at a distance model of command. This article makes a substantial contribution to understanding the role of network structure in the emergence of control between organizations in disrupted settings. Additionally, our innovative approach to network inference will guide researchers in dealing with error‐prone data in their own research on policy networks.