An Exploration of Three Forms of Community-Based Social Capital Nicole Renay Grewe Iowa State University
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Iowa State University Capstones, Theses and Retrospective Theses and Dissertations Dissertations 2003 Social capital and local development: an exploration of three forms of community-based social capital Nicole Renay Grewe Iowa State University Follow this and additional works at: https://lib.dr.iastate.edu/rtd Part of the Economics Commons, and the Sociology of Culture Commons Recommended Citation Grewe, Nicole Renay, "Social capital and local development: an exploration of three forms of community-based social capital " (2003). Retrospective Theses and Dissertations. 1433. https://lib.dr.iastate.edu/rtd/1433 This Dissertation is brought to you for free and open access by the Iowa State University Capstones, Theses and Dissertations at Iowa State University Digital Repository. It has been accepted for inclusion in Retrospective Theses and Dissertations by an authorized administrator of Iowa State University Digital Repository. For more information, please contact [email protected]. Social capital and local development: an exploration of three forms of community-based social capital by Nicole Renay Grevve A dissertation submitted to the graduate faculty in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Major: Rural Sociology Program of Study Committee: Vernon D. Ryan (Major Professor) Stephen M. Aigner Terry L. Besser Peter F. Korsching Timothy O. Borich Iowa State University Ames, Iowa 2003 Copyright © Nicole Renay Grewe, 2003. All rights reserved. UMI Number: 3105076 UMI UMI Microform 3105076 Copyright 2003 by ProQuest Information and Learning Company. All rights reserved. This microform edition is protected against unauthorized copying under Title 17, United States Code. ProQuest Information and Learning Company 300 North Zeeb Road P.O. Box 1346 Ann Arbor, Ml 48106-1346 ii Graduate College Iowa State University This is to certify that the doctoral dissertation of Nicole Renay Grewe has met the dissertation requirements of Iowa State University Signature was redacted for privacy. Signature was redacted for privacy. the JWajor Program iii TABLE OF CONTENTS LIST OP TABLES v ACKNOWLEDGEMENTS vii ABSTRACT viii CHAPTER 1. INTRODUCTION 1 Rationale and Purpose 7 Research Questions and Objectives 12 CHAPTER 2. LITERATURE REVIEW 14 Community and Economic Development: Process and Strategy 14 Community Development 17 Economic Development 20 Community and Economic Development Practice 22 Social Capital: Origins and Definitions 24 Social Capital Theoretical Perspectives 27 A Critical Perspective of Social Capital 30 Social Capital as a Feature of Community 33 Dimensions of Social Capital 37 Social Networks 39 Network Qualities: Sympathy and Social Trust 41 Relationships Matter: Social Capital and Local Development 43 Forms of Social Capital ..47 iv Generating Hypotheses 54 Forms of Community-Based Social Capital 55 Community-Based Social Capital as a Predictor of Local Development 56 CHAPTER 3. METHODOLOGY 58 Population and Sample 59 Resident Questionnaire Design and Indicator Selection ....61 Description of Resident Response Rates .68 Composite Scales for Social Capital Forms 70 Key-Informant Questionnaire Design and Indicator Selection 73 Description of Key-Informant Response Rates 77 Local Development Composite Scales 80 CHAPTER 4. RESULTS 84 CHAPTER 5. CONCLUSIONS 93 Summary and Discussion 93 Implications for Theory, Research, and Local Development Practice 98 APPENDIX A: RDI RESIDENT SURVEY INSTRUMENT 103 APPENDIX B: NRI KEY-INFORMANT SURVEY INSTRUMENT 115 APPENDIX C: NRI CITY CLERK SURVEY INSTRUMENT 129 APPENDIX D: ADDITIONAL TABLES 142 REFERENCES 155 V LIST OF TABLES Table 1. Social capital measurement items 62 Table 2. Frequency distributions for social capital measurement items 69 Table 3. Scale development of social capital forms 71 Table 4. Three forms of community-based social capital 71 Table 5. Summary of value introjection scale 72 Table 6. Summary of bounded solidarity scale 73 Table 7. Local development measurement items 76 Table 8. Frequency distributions for local development measurement items .79 Table 9. Summary of economic development scale 81 Table 10. Economic development, citizen participation, and information base 81 Table 11. Summary of information base scale 82 Table 12. Forms of social capital correlation matrix 85 Table 13. Social capital predictors of economic development 86 Table 14. Local development correlation matrix 87 Table 15. Summary of economic development and citizen participation scale 88 Table 16. Combinations of local development activities 89 Table 17. Summary of economic development and information base scale 89 Table 18. Summary of economic development, citizen participation. and information base scale 89 Table 19. Social capital predictors of economic development / citizen participation 90 vi Table 20. Social capital predictors of economic development / information base 91 Table 21. Social capital predictors of economic development / citizen participation / information base 92 Table 22. Community populations and response rates 143 Table 23. Forms of community-based social capital 147 Table 24. Economic development, citizen participation, and information base 151 vii ACKNOWLEDGEMENTS Although many have indirectly contributed to the completion of this dissertation, I am reserving acknowledgement for the person who had the greatest impact. I would like to express my sincere thanks and appreciation to my major professor and mentor, Vern Ryan, for his guidance and insight through all stages of producing this dissertation. His knowledge and wealth of experience were invaluable. Of equal importance, I am grateful for Vern s patience, unwavering support, and sense of humor throughout my graduate education at Iowa State University. viii ABSTRACT Recent social capital literature has extended the concept from an individual attribute to a characteristic of communities. As a community-level attribute, social capital has been increasingly linked to community well-being and local development. In light of this, this study examines whether and how community-based social capital is associated with community and economic development. Adopting Portes and Landolt's theoretical framework, community-based social capital is conceptualized and measured according to three forms - enforceable trust, value introjection, and bounded solidarity (2000). Community development is defined by process; measurement is limited to two integral community development principles - citizen participation and knowledge generation. Economic development is also defined by process and is measured according to a community's level of economic development activity. Quantitative analysis is based on data collected from 98 Iowa communities in 1994 and 1997. Findings indicate community-based social capital forms contribute to community and economic development. In particular, community-based social capital in the form of value introjection is consistently associated with local development. Findings are discussed within the context of implications for theory, future research, and local development practice. 1 CHAPTER 1: INTRODUCTION Rural communities have played an important role in American society. They have reinforced traditional values of community, supported ideals of individualism, and served as a pillar of American patriotism. Economically, they have also provided a considerable amount of the labor, food, and natural resources that fuel America. For many citizens, rural communities stand as the foundation of agrarian myths depicting pastoral landscapes populated with hard-working people who value family and community. There is no doubt the American image of an idyllic small town "nestled between farms and woodlands on rolling hills with winding roads, covered bridges, and steepled churches is a popular one in American culture" (Humphrey, 1990:34). Contrary to popular belief, research suggests romanticized images of preserved rural community life amid family farms, locally-owned stores, small factories, and home fronts continue to serve as a persistent misperception of the true conditions characterizing much of contemporary rural America. As Richardson contends, "the reality of (today's) rural America is too often shrouded in popular myth" (2000:XII). Contemporary rural communities are challenged by fast-paced change, diversity, and increased complexity (Castle, 1993, 1995; Galston and Baehler. 1995; Lapping, Daniels, and Keller, 1989; Richardson, 2000: Whitener and McGranahan, 2003 ). While some rural communities are prospering as high amenity settlements, tourist towns, retirement destinations, and rural fringe bedroom communities adjacent to metropolitan areas, most display symptoms raising concern for their future. 2 Today's troubled rural communities are confronting a variety of social, economic, environmental, and political challenges. Socially, many small towns are having difficulties maintaining their population (Cromartie, 2003; Fuguitt, 1995; Galston and Baehler, 1995; Lichter, McLaughlin, and Corn well, 1995; McGranahan and Seal, 2003; Whitener and McGranahan, 2003). Following a brief period of nonmetropolitan growth during the 1970s (coined the term "rural renaissance"), the majority of rural communities continue to experience population decline. The qualitative nature of this decline, however, is equally significant; most notable is the erosion of the local human resource base. Specifically, rural areas are threatened by the consequences of losing their "best and brightest" as those