Managing risk and information asymmetry in cross-sector networks: The case of the West, Texas fertilizer plant explosion

Technological hazards threaten public safety, and related risk cuts across jurisdictional boundaries, requiring a multiorganizational effort to mitigate. Yet, for those involved, ineffective risk recognition inhibits appropriate action. Using an embedded single-case studydesign,thisarticleexaminesthe2013West,Texas, fertilizer plant explosion and the networks of organizations responsible for disaster prevention, mitigation, preparedness, and response. Aspects of risk detection, communication, and interpretation and a series of self and collective mobilization efforts were analyzed. Findings demonstrate that information gaps between key actors, ie, information asymmetry-particularly the company, regulators, and local officials-hindered effective decision making. The case reveals the limitations of contemporary bureaucratic structures for the collective management of risk and the need for network governance that takes a more flexible and adaptive approach. The discussion section concludes with an outline of essential steps to improve the management of similar systems.