Regional engagement of locally anchored firms and its influence on socio-economic development in two peripheral regions over time

Abstract

This article sets out to explore the ways locally anchored firms in peripheral regions influence regional social capital through regional engagement and how this contributes to socio-economic development. Through regional engagement firms shape regional contexts by generating concrete outcomes, such as setting up schools (structural aspect) and by possibly influencing regional bonding and bridging social capital (social aspect). To examine the effects of regional engagement and its possible influence on bonding and bridging social capital of regional firms, an analytical framework is developed distinguishing between inclusive/exclusive agency for inclusive/exclusive benefit. This article focuses on regional engagement in two Swiss peripheral regions, which have followed different development paths in spite of their common institutional framework and geographical proximity. This study aims to gain insight into the ‘how’ of regional engagement and its influence on regional social capital and to examine the assumption of higher levels of regional social capital in a dynamic region from a long-term perspective (ca. 1850–2015). The findings of the qualitative research show that the dynamic Rhine Valley indeed disposes of higher levels of regional social capital than the less dynamic Toggenburg, which is related to the willingness of firms and other actors to collaborate for regional interests.