Interagency networks seem to be good vehicles for informal communication and coordination. However, if they are to be effective in bringing about innovation, networks must develop some of the boundaries and structure of a group and thereby lose their informality. Examination of a case history of a network in Harrisburg, Pennsylvania, suggests one alternative: A network can remain informal and operate by consensus but give rise to subgroups which take potentially controversial action in their own names. This possibility is explored and related to the emerging theory of social networks.

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