Regional Integration Through Contracting Networks

Abstract

This article advances two general hypotheses, bonding and bridging, to explain the process by which local governments decide whether to enter into contracts. The characteristics of goods and services are important factors in these decisions. In high asset-specificity transactions, the bridging hypothesis predicts local governments will establish ties with only a few “high status” actors, whereas in transactions for services with measurement difficulties, the bonding hypothesis predicts local governments will establish ties with partners of their existing partners to pool resources and reduce commitment risks. The general hypotheses are tested using agreements for law enforcement activities linking 66 actors in the Orlando-Kissimmee metropolitan area during five time periods (i.e., between 1986 and 2003). Using simulation investigation network analysis (SIENA) techniques, this study finds strong statistical support for these hypotheses.