STAGES AND DIRECTIONS OF RESTRUCTURING ASSOCIATIONS // BUSINESS IN DEVELOPED WESTERN COUNTRIES:

Dacey Rankins
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που συμμετέχουν: 2023-09-14 20:10:55
2024-01-15 17:53:43


(1970 – early 2000s)
To date, the situation in the system of business associations in developed countries. The West is determined by the cumulative results of long-term transformation. Changes in system of business associations began at different times and lasted for a long time period. In general, they can be divided into two periods or two “waves”.
"First Wave"
The “first wave” began in the United States and lasted from the mid-1970s to the early 1980s.
The main factors of change were the transition to the post-industrial stage of development:
structural restructuring of the economy associated with the reduction of industry and expansion of the service sector, globalization of the economy, i.e. more free movement capital across national borders, as well as the “crisis of the state” caused by the exhaustion of the tools for intervention in the economy that had been mastered by that time. Compared to its counterparts in Europe and Japan, US business associations traditionally were weaker, unstable and flexible. Development of associations as official mechanism for coordinating economic behavior systematically antitrust laws prevent. There are exceptions in certain industries, but they remain isolated (insurance, agriculture, professional sport). Collective political action is also particularly difficult: It is prohibited to grant associations any special powers. Permanent became a limiting factor for turning business associations into independent forces "free rider problem" and the inability to discipline potential members, impose formal sanctions on them. The main directions of change in the system of US business associations can be characterized as follows:
• marginalization of employers' unions as a result of declining coverage levels
workforce with trade union membership and decentralization of collective bargaining procedures (transferring the conclusion of collective agreements to a firm level);
• formation of a dualistic system of business associations
• rapid development of individual representation channels.


In the USA, the trend towards a weakening role of associations has become especially pronounced character: to varying degrees, this trend affected all three main functions of business associations. The importance of associations as an intermediary in relations with the state and trade unions, and as a service provider. As a result of perestroika, the system of business associations in the United States acquired an increased heterogeneity. Two sectors stood out in it, which were very different in resource provision. The leading sector of associations is represented by a significant a minority of large organizations with a developed internal structure. The portrait of a high-resource business association looks like this. Membership the base consists of firms, including large companies. Among the associations uniting firms, there is a significant minority representing large organizations, having a developed internal structure. In the early 2000s, 10% of associations business had more than 5 thousand members. Among the associations that united firms, 10% had a force of more than 3 thousand, and about 5% had a force of more than 10 thousand. High-resource associations tend to specialize in political representation of interests. Performing political functions to a greater extent was typical for large associations, as well as for associations unitingcompanies, not individuals. (In total, political functions are performed by about a third associations.) High-resource business associations have large budgets, but enough a modest staff of permanent staff, among whom specialists and technical workers, and virtually no functionaries. In the early 2000s, about a third of business associations had a budget of at least two million dollars. The permanent staff of these leading associations totaled 41 thousand people (as administrators at various levels, technical personnel and board members). A quarter of associations have a staff of 13 or more people.


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Such an association is characterized by a highly differentiated and mobile internal structure and active participation of senior management (management) of member companies in work of the association. This allows member companies to maintain high autonomy and the possibility of implementing individual political strategies. Political connections high-resource associations are characterized by decentralization. They are characterized by tight, but situational cooperation with external consultants in the implementation political actions. The role of high-resource associations has changed: they act not so much autonomous actors as coordinators of coordinated, but individual political strategies of members. In the high-resource sector associations associated with large and major corporations dominate, but there are also some successful associations representing the interests of small businesses. 

A typical US business association is quite different from a high-resource one. Typical associations are predominantly few in number and primitive in nature.  Average size - just over 300 members, a quarter of associations has less than 105 members, one sixth has less than 50 members. The membership base is made up of both individuals and small companies. Typical association is not enough is provided with the necessary resources and gravitates towards the “minimalist” modelorganizations." The average number of permanent staff of US business associations is 4 person, and in a quarter of associations the permanent staff does not exceed 1-2 people. A typical US business association specializes in providing services and production of “social capital”. The most common types of services, from among provided by US business associations to their members, one way or another, were focused on solving intra-industry problems. The most frequently mentioned services were related to vocational education and industrial training (44% associations), provision of statistical and other information on the situation in the industry (35%).

Among other services aimed at meeting intra-industry requests, ensuring the exchange of information between members of the association also appeared (27% associations), development of industry standards and accreditation (22%), assistance in creating business networks and holding discussions (20%). In providing this group services there were no variations due to affiliation associations to different types or sizes of associations (large - small).

The function of most business associations in the United States is the production of “social capital", i.e. connections within the relevant business communities, as well as the system rules and norms that govern the behavior of participants in these communities. In that in a sense, US business associations are on a par with the business press and schools business. The sector gave increased flexibility and dynamism to the dualistic system of associations independent intermediaries. As a result of the emergence of new instruments of influence (such as an extensive network of political consulting agencies, political committees actions, neoconservative think tanks) expanded opportunities for individual political actions of large companies and situational political mobilization of small businesses. A three-tier system of representation has been established business interests: high-resource associations, low-resource associations and sector ensuring individual political action.

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