"Exit and the Collective Representation of Business in the European Union"

Camerra-Rowe, Pamela. (1995) "Exit and the Collective Representation of Business in the European Union". In: UNSPECIFIED, Charleston, South Carolina. (Unpublished)

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Abstract

In this paper, I examine the microfoundations of associational activity in order to discern the conditions under which transnational business association become strong and effective advocates for pursuing members' political goals. Drawing on Albert Hirschman's notion of exit, I argue that the ability and willingness of firms and their representative national associations to exit transnational association and represent their own views, at a minimum, constrains the positions that transnational associations can take, and, at a maximum, undermines effective collective action. The ability and willingness to exit depends, in turn, on the characteristics of firms' assets and markets, the size of firms and the concentration of the sector. I suggest that highly concentrated sectors of large firms sometimes have less effective transnational associations because of firms' ability to exit.

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