National trade associations, economic development and globalization

Mehar, Ayub (2008): National trade associations, economic development and globalization.

Abstract

In the post communism regime, the responsibility of economic development has largely been shifted to private sector. The increasing role of private sector enterprises introduced the new concepts of corporate social responsibility (CSR), democratization in business and finance, corporate culture, fair trade, good governance and economic freedom and participation. The ‘wealth maximization concept’ under the ‘extreme capitalism’, limited liability, separate entity, agency cost, professionalism, and competitiveness were redefined. The implementation of the separate entity concept and the code of corporate governance have become more important in the post communism regime. Now, problems in trade and investment are closely linked with the problems of unemployment, income distribution, poverty, macroeconomic growth, regional and infrastructure development, socio-cultural changes, political structure, and the rate of crimes in a country. Business related issues couldn’t be studied in isolation; they are integrated with the sociopolitical dimensions of an economy. In the present inclination of globalization where the word ‘countries’ is being silently replaced by ‘economies’, the role of trade bodies has became more important. The policy advocacy, research and to work as a leading and supreme think tank should be the core activities of the national and multilateral chambers of commerce.

The power and role of the chambers in global polices has been studied and contemplated by various analysts. The role of trade associations, chambers of commerce, large corporations and the business groups in the economic development has become an important area of research which lead the drastic development in the literature of business economics. Now, Business Economics has become an important branch of the applied economics. To provide a forum for research and debates on the contemporary issues in Business Economics, the National Association of Business Economists are serving in the developing and industrialized countries. These associations have close association with the National Chambers of Commerce. Various economists have been analyzing on the productivity, importance and the role of the local chambers and the trade specific associations. Aldrich, Fiol, and Staber from Cambridge University, Arendt from University of Chicago, Axelrod, from New York, Benhabib from Princeton University, Dowling from Oxford University, Fombrun from Harvard Business School, Fukuyama from John Hopkins University, Gutmann from Harvard University, Harré from Cambridge University, Lehne from New York University, Olson from Harvard University, North from Cambridge University, Olson from Harvard University, and Shapiro from Oxford University are famous research scholars in the filed of business economics who have been serving on the role of large business houses and the business representative associations in the economic and socio political development and changes in the global business and financial environment.

The paper covers the importance and background of the study, nexus of the chambers with the states and multilateral institutions and effects on socioeconomic development and policy Recommendations.

• Item Type: MPRA Paper
• Language: English
• Keywords: Trade Associations, Globalization, Governance,
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D71 - Social Choice ; Clubs ; Committees ; Associations; P - Economic Systems > P1 - Capitalist Systems > P12 - Capitalist Enterprises; P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy

References

Aldrich, H. and C. Fiol. 1994. “Fools Rush In? The Institutional Context of Industry Creation.” Academy of Management Review 19 (4): 645-670.

Aldrich, H. and U.H. Staber. 1988. “Organizing Business Interests: Patterns of Trade Association Founding, Transformations, and Deaths.”’ In Ecological Models of Organizations, edited by G.R. Carroll. Cambridge: Ballinger.

Arendt, Hannah. 1998. The Human Condition. Chicago: University of Chicago Press.

Astley, W.G. and C. Fombrun. 1983. “Collective Strategy: Social Ecology of Organizational Environments.” Academy of Management Review 8 (4):576-587.

Axelrod, Robert. 1984. The Evolution of Cooperation. New York: Basic Books. Bachmann, Reinhard and Akbar Zaheer. 2006. Handbook of Trust Research. London: Elgar Press.

Badrinath, S.G. and Paul J. Bolster. 1996. “The Role of Market Forces in EPA Enforcement Activity.” Journal of Regulatory Economics 10 (2): 165-181.

Barber, Bernard. 1983. The Logic and Limits of Trust. New Jersey: Rutgers University Press.

Barnett, M. L. 2006a. “Waves of Collectivizing: A Dynamic Model of Competition and Cooperation over the Life of an Industry.” Corporate Reputation Review 8 (4): 272-292.

Barnett, M. L. 2006b. “Finding a Working Balance between Competitive and Communal Strategies.” Journal of Management Studies 43 (8): 1753-1773.

Barney, J. 1991. “Firm Resources and Sustained Competitive Advantage.” Journal of Management 17 (1): 99-120.

Benhabib, Sylvia. 1996. Democracy and Difference: Contesting the Boundaries of the Politics. Princeton: Princeton University Press.

Berens, Guido and Cees B.M. van Riel, 2004. “Corporate Associations in the Academic Literature: Three Main Streams of Thought in the Reputation.” Corporate Reputation Review 7 (2): 161-178.

Berg, B. L. 2007. Qualitative Research Methods for the Social Science. 6th edition. London: Pearson.

Bohman, James and William Rehg. 1997. Deliberative Democracy: Essays on Reason and Politics. Cambridge: MIT Press. Bromley, D. 2002. “Comparing Corporate Reputations: League Tables, Quotients, Benchmarks or Case Studies?” Corporate Reputation Review 5 (1): 35-44.

Celentani, M.D., D. Fidenberg, D.K. Levine and W. Pesendorfer. 1996. “Maintaining a Reputation Against a Long-lived Opponent.” Econometrica 64: 691-704.

Centre of Transnational Corporations (1988); “Transnational Corporations in World Development: Trends and Prospects. New York: UN 1988

Christiano, Thomas. 1999. The Rule of the Many. Boulder: Westview Press.

DiMaggio, P.J. 1988. “Interest and Agency in Institutional Theory.” In Institutional Patterns and Organizations: Culture and Environment, edited by L.G.Zucker. Cambridge: Ballinger.

DiMaggio, P.J. and W.W. Powell. 1983. “The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields.” American Sociological Review 48 (2): 147-160.

Dosi, Giovanni (1988); “Sources, Procedures and Microeconomic Effects of Innovation”; Journal of Economic Literature, Volume: XXVI, Number 3, September 1988.

Dowling, G.R. 2001. Creating Corporate Reputations. Oxford: Oxford University Press.

Estlund, David. 1993. “Who’s Afraid of Deliberative Democracy? On the Strategic/Deliberative Dichotomy in Recent Constitutional Jurisprudence.” Texas Law Review 7 (7): 1437-1477.

Fombrun, C. and M. Shanley. 1990. “What's in a Name? Reputation Building and Corporate Strategy.” The Academy of Management Journal 33 (2): 233-258.

Fombrun, C.J. 1996. Reputation: Realizing Value from Corporate Image. Cambridge: Harvard Business School Press.

Fudenberg, D. and D.K. Levine. 1992. “Maintaining a Reputation When Strategies are Imperfectly Observed.” Review of Economic Studies 59: 561-579.

Fudenberg, D. and D.K. Levine. 1994. “Efficiency and Observability with Long-run and Short-run Players.” Journal of Economic Theory 62: 103-135.

Fukuyama, Francis. 1995. Trust: The Social Virtues and the Creation of Prosperity. New York: Free Press.

George L. Ridgeway, ‘ Merchant of Peace – The History of the international Chamber of Commerce’

Geyskens, I., J.-B. Steenkamp and N. Kumar. 1998. “Generalizations about Trust in Marketing Channel Relationships using Meta-analysis.” International Journal of Research in Marketing 15 (3): 223-248.

Goldsmith, R.E., B.A. Lafferty and S.J. Newell. 2000. “The Impact of Corporate Credibility and Celebrity Credibility on Consumer Reactions to Advertisements and Brands.” Journal of Advertising 29 (3): 43-54.

Grant, Wyn. 2005. “Pressure Groups: A Politics of Collective Consumption.” Parliamentary Affairs 58 (2): 366-379.

Greenwood, R., R. Suddaby and C.R. Hinings. 2002. “Theorizing Change: the Role of Professional Associations in the Transformation of Institutional Fields,” Academy of Management Journal 45 (1): 58-80.

Gutmann, A. and D. Thompson.1996.Democracy and Disagreement. Cambridge: Harvard University Press. Thomas McCarthy. Boston: Beacon Press.

Hall, R. 1992. “The Strategic Analysis of Intangible Resources,” Strategic Management Journal 13: 135-144.

Hardin, G. 1968. “Tragedy of the Commons.” Science 162: 1243-1248.

Hardy, C. and N. Phillips. 1998. “Strategies of Engagement: Lessons from the Critical Examination of Collaboration and Conflict in an Inter-organizational Domain.” Organization Science 9 (2): 217-230.

Harré, Rom. 1999. “Trust and its Surrogates: Psychological Foundations of Political Process.” In Democracy & Trust, edited by Mark E. Warren. Cambridge. Cambridge University Press.

Hellman, Deborah. 2001. “Judging By Appearances: Professional Ethics, Expressive Government, and the Moral Significance of How Things Seem.” Maryland Law Review 60 (3): 653-87.

Hetherington, Marc. 2004. Why Trust Matters: Declining Political Trust and the Demise of American Liberalism. Princeton: Princeton University Press.

Hillman, A. and M. Hitt. 1999. “Corporate Political Strategy Formulation: A Model of Approach, Participation, and Strategy Decisions.” Academy of Management Review 24 (4): 825-844.

Hoffman, A. 1997. From Heresy to Dogma: An Institutional History of Corporate Environmentalism. San Francisco: The New Lexington Press.

Honig, Bonnie. 1993. Political Theory and the Displacement of Politics. Ithica: Cornell University Press.

Ireland, D. R., M.A. Hitt and D. Vaidyanath. 2002. “Alliance Management as a Source of Competitive Advantage.” Journal of Management 28 (3): 353–446.

Jarillo, J.C. 1988. “On Strategic Networks.” Strategic Management Journal 9: 31-35.

Karpoff, J.M., J.R. Lott and E.W. Wehrly. 2005. “The Reputational Penalties for Environmental Violations: Empirical Evidence.” The Journal of Law & Economics 48: 653-675.

King, A.A., M.J. Lenox and M.L. Barnett. 2002. “Strategic Responses to the Reputation Commons Problem.” In Organizations, Policy and the Natural Environment: Institutional and Strategic Perspectives

Kramer, Roderick M. 2006. Organizational Trust. A Reader. Oxford: Oxford University Press.

Lawrence, T.B. 1999. “Institutional Strategy.” Journal of Management 25 (2): 161-188.

Lehne, R. 2001. Government and Business. American Political Economy in Comparative Perspective. New York: Chatham House.

Lorenzoni, G. and A. Lipparini. 1999. “The Leveraging of Inter-firm Relationships as a Distinctive Organizational Capability: a Longitudinal Study.” Strategic Management Journal 20 (4): 317 – 338.

Manin, Bernard, Adam Przeworski and Susan C. Stokes. 1999. Democracy, Accountability, and Representation. Cambridge: Cambridge University Press.

Mayer, R.C., J.H. Davis and F.D. Schoorman. 1995. “An Integrative Model of Organizational Trust.” Academy of Management Review 20 (3): 709-734.

McGahan, A.M and M.E. Porter. 1997. “How Much does Industry Matter, Really?” Strategic Management Journal 18 (1): 15-30.

Miner, T., A. Amburgey and T. Stearns. 1990. “Inter-organizational Linkages and Population Dynamics: Buffering and Transformational Shields.” Administrative Science Quarterly 35 (4): 689-713.

Newell, S.J. and R.E. Goldsmith. 2001. “The Development of a Scale to Measure Perceived Corporate Credibility.” Journal of Business Research 52 (3): 235- 247.

North, Douglass. 1990. Institutions, Institutional Change, and Economic Performance. New York: Cambridge University Press.

Olson, M. 1965. The Logic of Collective Action: Public goods and the theory of groups. Cambridge: Harvard University Press.

Ostrom, E. 1990. Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge: Cambridge University Press.

Pack, Howard and Larry E. Westphal; “Industrial Strategy and Technological Change”; Journal of Development Economies 22, 1986, pp 87-128

Parsons, Talcott. 1977. The Evolution of Societies. Edited with introduction by Toby Jackson. Englewood Cliffs: Prentice-Hall.

Perelman, Chaim and L. Olbrechts-Tyteca. 1969. The New Rhetoric: A Treatise on Argumentation. Translated by John Wilkinson and Purcell Weaver. Notre Dame: University of Notre Dame Press.

Pijnenburg, B. 1998. “EU Lobbying by ad hoc Coalitions: An Exploratory Case Study.” Journal of European Public Policy 5 (2): 303-321.

Pitkin, Hanna Fenichel. 1981. “Justice: On Relating Private and Public.” Political Theory 9: 327-52.

Powell, W.W., K.W. Koput and L. Smith-Doerr. 1996. Inter-organizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology.” Administrative Science Quarterly 35: 116-145.

Rao, H. 1994. “The Social Construction of Reputation: Certification Contests, Legitimating, and the Survival of Organizations in the American Automobile Industry: 1912-1985.” Strategic Management Journal 15: 29-44.

Rees, J. 1997. “The Development of Communitarian Regulation in the Hemical Industry.” Law & Policy 19 (4): 477-528.

Rhee, Yung Whee and Therese Belot (1990); “Export Catalysts in Low-Income Countries: A Review of Eleven Success Stories”; Washington: World Bank Discussion Paper No.72

Richardson, J. 2000. “Government, Interest Groups and Policy Change.” Political Studies 48: 1006-1025.

Sako, M. 1992. Prices, Quality and Trust. Cambridge: Cambridge University Press. Schmalensee, R. 1985. “Do Markets Differ Much?” American Economic Review 75 (3): 335-351.

Scott, W.R. 1981. Organizations: Rational, Natural, and Open Systems. Inglewood Cliffs: Prentice Hall.

Selnes, F. and K. Gønhaug. 2000. “Effects of Supplier Reliability and Benevolence in Business Marketing.” Journal of Business Research 49 (3): 259-271.

Selsky, John W. 1991. “Lessons in Community Development: An Activist Approach to Stimulating Interorganizational Collaboration.” Journal of Applied Behavioral Science 27 (1): 91-115.

Shapiro, Ian. 1999. “Enough of Deliberation: Politics is about Interests and Power.” In, Deliberative Politics, edited by Stephen Macedo Oxford: Oxford University Press.

Streech, W. and P. Schmitter. 1985. Private Interest Government. San Francisco Sage Publications.

The Economist (2008); Who Runs the World”; October 05, 2008

Thompson, Dennis F. 1995. Ethics in Congress: From Individual to Institutional Corruption. Washington: The Brookings Institution.

Tucker Andrew, (2008); “Trade Associations as Industry Reputation Agents: A Model of Reputational Trust”; Business and Politics, Vol 10, Issue 1.

Walzer, Michael. 1999. “Deliberation and What Else?” In Deliberative Politics. Essays on Democracy and Disagreement, edited by Stephen Macedo. New York: Oxford University Press.

Weber, Max. 1978. Economy and Society. Edited by G. Roth and C. Wittich, 2 vols. Berkeley: University of California Press.

Williams, Cynthia Clark. 2005. “Trust Diffusion: The Effect of Interpersonal Trust on Structure, Function and Organizational Transparency.” Business & Society 44 (3): 357-368.

Williamson, O.E. 1993. “Calculativeness, Trust, and Economic Organization.”