The Role of Dynamic Social Capital on Economic Development Partnerships Within and Across Communities

Various types of social capital facilitate the creation of intralocal or interlocal economic development partnerships because it reduces the transaction costs that lead to collective action problems. Prior studies have focused on explaining how collective action mechanisms lead to the creation of economic development partnerships. While multidimensional social capital plays a dynamic role in promoting economic development activities within and across communities, the underlying complexity of multidimensional social capital remains unexplored in prior studies. This study creates a typology presenting various dimensions of social capital and tests the effects of multidimensional social capital on different economic development partnerships. Results indicate that different dimensions of social capital contribute to creating economic development partnerships regardless of local boundaries.