The Impact of Cross-Sector Collaboration on Economic Development

Abstract

Cross-sector collaboration is a valuable tool to address difficult societal challenges. Solving societal problems within boundaries, or sector silos, is a decreasing trend. Collaboration, particularly cross-sector collaboration, is emerging as an effective method for addressing social challenges. However, executing cross-sector collaborations can be difficult based on the differences between the private, public, and nonprofit sectors. Differences, in the form of internal forces and external pressures, can be prohibitive to the collaboration or put a strain on the collaboration. Given the importance of cross-sector collaboration, further research on how to sustain cross-sector collaboration can provide more consensuses on collaborative practices, which could lead to more robust results to some of our society's most challenging issues. Economic development, a social issue that most nations, regions, or local communities discuss and invest in, can be positively affected by cross-sector collaboration through successful sustainability. This research focused on a business incubator, a form of economic development that involved local partner organizations in the private, public, and nonprofit sectors. Through the lens of participants in the business incubator, leaders from partner organizations from different sectors that support the business incubator, and members of stakeholder organizations that support the business incubator, this study focused on the collaborative experience and the outcomes, consequences, and effects of collaboration. Ultimately, this study advances extant research by providing some insight into how to mitigate risks for the benefit of sustaining the cross-sector collaboration.