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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

Author

Listed:
  • Robert Newbery

    (Plymouth University Business School, 212 Cookworthy, Plymouth PL4 8AA, England)

  • Johannes Sauer

    (Department of Agricultural Economics, University of Kiel, 24098 Kiel, Germany)

  • Matthew Gorton

    (Newcastle University Business School, 5 Barrack Road, Newcastle NE1 4SE, England)

  • Jeremy Phillipson

    (Centre for Rural Economy, AFRD, Newcastle University, Newcastle NE1 7RU, England)

  • Jane Atterton

    (Scottish Agricultural College, Kings Buildings, Edinburgh EH9 3JG, Scotland)

Abstract

Research into business associations indicates that many associations suffer from very high levels of inactive members and fail to deliver significant benefits to members. In order to improve provision, the objective of this paper is to understand the determinants that drive or limit performance of rural business associations. Previous research has focused on the ratio of perceived costs to benefits as informing the decision to remain a member. However, in small associations, membership may be more influenced by social norms than the logic of rational choice. Using measures of satisfaction and willingness to pay for association survival as in-group measures of performance this paper finds that (1) for small associations, group size is critical, (2) associations are valued higher in communities where trust is lower, (3) funding by public bodies may be counterproductive to long-term development aims, and (4) the degree of rurality is insignificant in explaining association performance.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:envira:v:45:y:2013:i:4:p:967-985
    DOI: 10.1068/a44669
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    References listed on IDEAS

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