Measuring Social Capital Linkage: The Role of the State-Based Voluntary Professional Association

Abstract

This paper discusses the nature of the Australian bus and coach representative environment and the role of the state-based voluntary professional association (SBVPA). A literature review associated with memberships to which businesses subscribe for representation and linking social capital is presented, as well as a discussion on agency theory that possibly explains the member/association dynamic. The results of an Australia-wide survey of bus operators, which measures the extent of linking social capital between themselves and their SBVPA, are revealed. It is found that one state with consistently higher results may possess a competitive advantage in the form of a partnership agreement with the State Government Authority-an agreement that rests on co-operation and facilitates social capital. This evidence could contribute to the global narrative on how non-profit associations can be a mechanism for institutionalising social capital, sustain a firm's operation and encourage governments to increase their use of non-profit associations, as agents of government, to achieve public policy outcomes.