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Business associations and their potential contribution to the competitiveness of SMEs

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  • Robert J. Bennett

Abstract

This paper examines the relations between small and medium sized enterprises (SMEs) and business associations. It identifies sectoral, local and national dimensions and reports survey results in Britain that evidence the range of services supplied and demanded. The paper reviews the theoretical understanding of how associations operate and how they can be expected to relate to their SME members. Using this framework the paper then assesses, largely using new survey evidence, the types of associations most relevant to SMEs, their characteristics, and their services. The paper concludes by arguing that SMEs are one of the least well represented groups of business, their interests are often likely to be swamped in association governance either by large businesses or by employee--status individuals. In general there are also limits to development of services through business associations, although there is strong variation between businesses by sector, location and size. The author concludes that contributions by associations through specific services to individual companies appears to be relatively limited. The chief contribution of associations to competitiveness of their member businesses appears to be their improvement of collective industry standards, e.g. through codes of conduct, information, collective events, benchmarking and management seminars.

Suggested Citation

  • Robert J. Bennett, 1998. "Business associations and their potential contribution to the competitiveness of SMEs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(3), pages 243-260, January.
    • Handle: RePEc:taf:entreg:v:10:y:1998:i:3:p:243-260
    DOI: 10.1080/08985629800000014
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    1. Larrain Aylwin, M.J. & Prüfer, J.O., 2014. "Business Associations, Lobbying, and Endogenous Institutions," Other publications TiSEM 99d2d002-87d2-4d8e-b1d9-8, Tilburg University, School of Economics and Management.
    2. P. J. A. Robson & R. J. Bennett, 2000. "The use and impact of business advice by SMEs in Britain: an empirical assessment using logit and ordered logit models," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1675-1688.
    3. Mehmet Turker & Zafer Konakli, 2016. "Influence of Nongovernmental Organizations on Forming Country Image and Developing the Country Brand Using Public Diplomacy," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(1), pages 221-235, January.
    4. Bertrand, Olivier & Betschinger, Marie-Ann & Brea-Solís, Humberto, 2022. "Export barriers for SMEs in emerging countries: A configurational approach," Journal of Business Research, Elsevier, vol. 149(C), pages 412-423.
    5. Nugent, Jeffrey B., 2023. "A new institutional perspective on business associations: Filling a gap between firms and states in the dynamic analysis of Richard Day," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 49-59.
    6. David Irwin, 2015. "Kenya’s Business Networks," SAGE Open, , vol. 5(1), pages 21582440145, January.
    7. Larrain Aylwin, M.J. & Prüfer, J.O., 2014. "Business Associations, Lobbying, and Endogenous Institutions," Other publications TiSEM bb36b0e2-f17f-4d76-8637-a, Tilburg University, School of Economics and Management.
    8. Perez-Suarez, M. & Belda Alvarez, J.I., 2019. "The Export Competitiveness Of Social Economy Enterprises. The Case Of Southern Spain," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 19(2), pages 57-74.
    9. Marta Fernández‐Olmos & Ana F. Gargallo‐Castel & Ruimin Wang, 2024. "The effects of business associations in the export–survival relationship: An application to the DOC Rioja wine industry," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 31-45, January.
    10. Helen Lawton Smith & Saverio Romeo & Malika Virahsawmy, 2012. "Business and Professional Networks: Scope and Outcomes in Oxfordshire," Environment and Planning A, , vol. 44(8), pages 1801-1818, August.
    11. Houghton, Susan M. & Smith, Anne D. & Hood, Jacqueline N., 2009. "The influence of social capital on strategic choice: An examination of the effects of external and internal network relationships on strategic complexity," Journal of Business Research, Elsevier, vol. 62(12), pages 1255-1261, December.
    12. Martina Battisti & Martin Perry, 2015. "Small enterprise affiliations to business associations and the collective action problem revisited," Small Business Economics, Springer, vol. 44(3), pages 559-576, March.
    13. Larrain Aylwin, M.J. & Prüfer, J.O., 2014. "Business Associations, Lobbying, and Endogenous Institutions," Discussion Paper 2014-071, Tilburg University, Center for Economic Research.
    14. Robert Newbery & Johannes Sauer & Matthew Gorton & Jeremy Phillipson & Jane Atterton, 2013. "Determinants of the Performance of Business Associations in Rural Settlements in the United Kingdom: An Analysis of Members' Satisfaction and Willingness-to-Pay for Association Survival," Environment and Planning A, , vol. 45(4), pages 967-985, April.
    15. Schmidt, Claudia & Chase, Lisa & Barbieri, Carla & Rilla, Ellie & Knights, Doolarie Singh & Thilmany, Dawn & Tomas, Stacy & Dickes, Lori & Cornelisse, Sarah & Lamie, R. David & Callahan, Rachael & Geo, 2022. "Linking Research and Practice: The Role of Extension on Agritourism Development in the United States," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 4(3), August.
    16. Rosemary Atieno, 2009. "Linkages, Access to Finance and the Performance of Small-Scale Enterprises in Kenya," WIDER Working Paper Series RP2009-06, World Institute for Development Economic Research (UNU-WIDER).
    17. Kurt, Yusuf & Sinkovics, Noemi & Sinkovics, Rudolf R. & Yamin, Mo, 2020. "The role of spirituality in Islamic business networks: The case of internationalizing Turkish SMEs," Journal of World Business, Elsevier, vol. 55(1).
    18. Liang Wang & Justin Tan, 2019. "Social Structure of Regional Entrepreneurship: The Impacts of Collective Action of Incumbents on De Novo Entrants," Entrepreneurship Theory and Practice, , vol. 43(5), pages 855-879, September.
    19. Robert Bennett & Paul Robson, 1999. "Intensity of Interaction in Suppy of Business Advice and Client Impact: A Comparison of Consultancy, Business Associations and Government Support Initiatives for SMEs," Working Papers wp142, Centre for Business Research, University of Cambridge.
    20. Jeffrey B. Nugent & Jiaxuan Lu, 2020. "Does the All-China Federation of Industry and Commerce Align Private Firms with the Goals of the People's Republic of China's Belt and Road Initiative?," Asian Development Review, MIT Press, vol. 37(2), pages 45-76, September.
    21. Petrit Gashi & Iraj Hashi & Geoff Pugh, 2014. "Export behaviour of SMEs in transition countries," Small Business Economics, Springer, vol. 42(2), pages 407-435, February.

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