Institutional Change and the Establishment of Strategic Networks – the Rich Wetlands of Kristianstad.

Abstract: Can the new theoretical developments in New Institutional Economics suggested by Douglas C. North (2005) be used for analysing the establishment of publicly initiated strategic networks? North suggest a theory of institutional change which emphasises the initiatives by institutional entrepreneurs and analyses how the institutional framework provides incentives for entrepreneurs to develop new knowledge, which leads to path dependent, non-ergonic institutional changes. The theory of institutional change is here applied to a case, the “The Rich Wetlands of Kristianstad”, describing how a small hub organization of a local strategic network was established by the municipality of Kristianstad, Sweden. By applying the “Northean view” to the case, a possible theoretical development of the analysis of publicly initiated strategic networks is suggested. The case shows how institutional entrepreneurs develop knowledge and how they take initiatives which result in an institutional change. The local opinion has changed towards the wetlands and the strategic network has emerged as an innovative governance structure for natural resources with multiple social functions. A theoretical development is suggested where concept innovations and multi-purpose proposals are identified as vehicles used by institutional entrepreneurs and a more nuanced view of institutional levels is suggested in analysing institutional change.