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Understanding the Rise and Transformation of Business Collective Action in India


  • Sinha Aseema

    (University of Wisconsin-Madison)


Scholars of business associations have recently learned a great deal about how associations contribute to development, but much less about the origins of such developmental associations. This essay introduces and assesses a new political explanation for the origins of developmental associations. Conventional wisdom holds that developmental associations must be able to rise above political and collusive pressures and establish autonomy from states. Yet, I argue that these associations developmental capacities emerge as a result of active state support by key actors, and in response to challenges and threats posed by competitive business organizations. Developmental associations emerge and acquire their capacities as they confront internal threats from other associations, as well as utilize the opportunities presented by the national state and international channels. In this view, functional or organizational capacity is not enough, rather, developmental business associations, must exhibit political capacitythat is the ability to manage the political environment, and respond to the structure of opportunities and threats. This explanation views developmental business associations as political organizations seeking power as well as offers a historically sensitive analysis of transformation of business politics in reforming India.

Suggested Citation

  • Sinha Aseema, 2005. "Understanding the Rise and Transformation of Business Collective Action in India," Business and Politics, De Gruyter, vol. 7(2), pages 1-37, August.
  • Handle: RePEc:bpj:buspol:v:7:y:2005:i:2:n:2

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    Cited by:

    1. Barron, Andrew, 2011. "Exploring national culture's consequences on international business lobbying," Journal of World Business, Elsevier, vol. 46(3), pages 320-327, July.
    2. Rahul MUKHERJI, 2008. "The Political Economy of India's Economic Reforms," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(2), pages 315-331.
    3. Calì, Massimiliano & Sen, Kunal, 2011. "Do Effective State Business Relations Matter for Economic Growth? Evidence from Indian States," World Development, Elsevier, vol. 39(9), pages 1542-1557, September.
    4. Taylor Scott D., 2012. "Influence without Organizations: State-Business Relations and their Impact on Business Environments in Contemporary Africa," Business and Politics, De Gruyter, vol. 14(1), pages 1-37, April.
    5. Gerring, John & Kingstone, Peter & Lange, Matthew & Sinha, Aseema, 2011. "Democracy, History, and Economic Performance: A Case-Study Approach," World Development, Elsevier, vol. 39(10), pages 1735-1748.

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