Sustaining business networks: Understanding the benefit bundles sought by members of local business associations

Abstract

Local business associations can be important mechanisms for stimulating inter-firm cooperation leading to economic growth and development. However, previous research suggests that the unfulfilled expectations of their members can lead to low participation, high membership churn and network instability over time. As a departure from studies that have explored why local associations supply certain benefits and services, this paper draws on an original, demand side membership survey of local business associations to identify for the first time the bundles of benefits sought by members. Two bundles of benefits (instrumental and info-social) relating to thin and thick models of rational choice, respectively, are identified in explaining why firms join and remain part of associations. The relevance of these bundles to members was found to vary with business profile and length of membership, with the value of instrumental benefits reducing over time, whereas the demand for info-social benefits remained relatively stable. The findings have important implications for local strategies for sustaining business networks.

Innovation networks and the institutional actor-producer relationship in rural areas: The context of artisan food production

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Influence of Innovativeness, Environmental Competitiveness and Government, Industry and Professional Networks on SME Export Likelihood

“…For the sub-segment of Manufacturing only, the overall network effects and in particularly, Industry networks is positive and significant to export income but showing weaker associations with Government networks. Our view is that the significance of Industry networks effects is likely to be the result of SMEs interactions within the many trade associations, chambers of commerce and others in the same industry such that diffusion of information and contacts enhances the potential of SMEs entry to export markets (Newbery et al 2015). The weak and insignificant effects of Professional networks to SMEs export likelihood is likely to be attributed to the perceptions of Professional networks as, on the one hand, offering paid specialized knowledge such as export consultants but on the other hand, such knowledge are also freely available from government agencies (Chang, Jack, and Webster 2017;Cumming, Fischer, and Peridis 2016).…”

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Pre and post-entry resource needs for international entrepreneurs: The role of government and industry networks

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