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The public administration literature has demonstrated that the manner in which a network is led is related to its effectiveness. However, whythis relationship occurs and whetherit is dependent on external circumstances remain unclear. Relying on Provan and Milward's framework of interorganizational network effectiveness and the neo-institutional approach to local leadership, we propose that the manner in which the local authority leads the local network is related to the network's structure, which, in turn, influences its effectiveness. We also propose that this association is contingent on the characteristics of the local authority in which the network exists. Using a sample of 586 network participants from 68 Israeli networks, we demonstrate that the degree to which the local authority is centralized explains the link between the network's leadership and its effectiveness, but only in local authorities with a high socioeconomic status (SES). In addition, we find that in Israeli Arab municipalities such centralization is counterproductive, impeding the network's effectiveness. We discuss the theoretical and practical implications of these findings.
