Local officials voluntarily form networks when it is presumed helpful to their needs. One of
the existing theories that helps explain the emergence of collaboration is derived from social
exchange theory (Cook 1977; Emerson 1962; Homans 1958). Collaboration is a voluntary transfer of resources between multiple actors driven by a cost-benefit calculation,
which basically lies on relational structure and power (Cook 1977). Organizations
will engage in partnerships when they derive mutually reinforcing benefits from doing so.
In the context of social exchange theory, benefits and costs are not only limited to monetary
items but also include other material as well as nonmaterial goods, such as symbols of
approval or prestige, organizational autonomy, influence, and dependency (Emerson
1962; Homans 1958). Viewed in this way, local government networks may emerge if it
is expected to enhance the mutual benefits among partners (Cook 1977) and/or exert in-
fluential power of one or more organizations over another (Cook 1977; Emerson 1962).
Alternatively, partners may withdraw from collaborations if the exchange processes are
not rewarding to them and/or the balance of cooperative power breaks down (Emerson
1962).