Effective Strategy Making in Local and Regional Development

Abstract: This paper presents findings from a study that examined strategy making in the context of local and regional development. There are approximately 13,000 local and regional economic development organizations in the U.S. alone; and it is likely that at some point in the recent past or near future, a great many of them have developed, or will develop, a strategy for growing their economy. Little research, however, has been conducted to examine what makes one local or regional development strategy process any better or worse than another. The purpose of this research was to fill that gap in the literature, identifying factors that lead to effective strategy making in local and regional development and to provide civic leaders and development practitioners with evidence-based information to help them design and implement effective strategy-making initiatives. This mixed-method study included both a qualitative grounded-theory component as well as a quantitative quasi-experimental phase. The theoretical foundation for the study came from the scholarly literature on social innovation from sociology, collaborative governance from public administration, and strategy formation from management. Data were gathered from over 100 strategy initiatives from around the U.S. as well as from a panel of economic development strategy experts. The findings point to characteristics consistent with open strategy rather than the closed models often associated with traditional strategic planning. This paper will discuss eight specific characteristics of effective strategy making and shed new light on the application of open strategy in local and regional development. Although the study examined strategy in the context of local and regional development, the findings will be of relevant to anyone interested in the development and implementation of strategy in open networks.