Collaboration to improve local business services : The “Norrtälje Project” in Sweden

Purpose – The purpose of this paper is to test the effectiveness of collaborative dialogue to support small business development in small communities. Design/methodology/approach – The paper employs a case study involving collaboration using both an interpersonal network structure and an inter‐organizational project structure. Findings – the paper finds that collaboration mobilizes local resources to fill structural and relational gaps in the local institutional environment for SMEs. Research limitations/implications – The research agenda for collaborative planning should include studying institutional factors that can hinder some actors such as small businesses from participating. Originality/value – The paper provides practical experience of banks as community development actors, and identifies a potential conflict in normative collaboration theory between inclusiveness/diversity and a “higher level” institutional focus.