TY - JOUR
T1 - Sustaining business networks
T2 - Understanding the benefit bundles sought by members of local business associations
AU - Newbery, Robert
AU - Gorton, Matthew
AU - Phillipson, Jeremy
AU - Atterton, Jane
PY - 2016/11/1
Y1 - 2016/11/1
N2 - 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.
AB - 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.
KW - benefit bundles
KW - business networks
KW - collective action
KW - Local business associations
KW - rational choice theory
KW - small businesses
UR - http://www.scopus.com/inward/record.url?scp=84994228066&partnerID=8YFLogxK
U2 - 10.1177/0263774X15608850
DO - 10.1177/0263774X15608850
M3 - Article
AN - SCOPUS:84994228066
VL - 34
SP - 1267
EP - 1283
JO - Environment and Planning C: Politics and Space
JF - Environment and Planning C: Politics and Space
SN - 2399-6544
IS - 7
ER -