Community structure is an important property of complex networks. An automatic discovery of such structure is a fundamental task in many disciplines, including sociology, biology, engineering, and computer science. Recently, several community discovery algorithms have been proposed based on the optimization of a quantity called modularity (Q). However, the problem of modularity optimization is NP-hard, and the existing approaches often suffer from prohibitively long running time or poor

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... Furthermore, it has been recently pointed out that algorithms based on optimizing Q will have a resolution limit, i.e., communities below a certain scale may not be detected. In this research, we first propose an efficient heuristic algorithm, Qcut, which combines spectral graph partitioning and local search to optimize Q. Using both synthetic and real networks, we show that Qcut can find higher modularities and is more scalable than the existing algorithms. Furthermore, using Qcut as an essential component, we propose a recursive algorithm, HQcut, to solve the resolution limit problem. We show that HQcut can successfully detect communities at a much finer scale and with a higher accuracy than the existing algorithms. Finally, we apply Qcut and HQcut to study a protein-protein interaction network, and show that the combination of the two algorithms can reveal interesting biological results that may be otherwise undetectable.