Abstract:
The overarching research objective of the thesis is to acknowledge the roles of trade
associations (TAs) and to identify to what extent TAs perform these roles. The primary
purpose is to learn how TAs as influential actors support the internationalization of Chinese
firms. The increasing level of their internationalization has captured scholarly attention in the
past two decades although it is not known whether firms are motivated to be involved in TA
activities to obtain the competitive advantage required for internationalization. A mixed-method research design is employed to conduct interviews and surveys with TA
representatives and firm representatives from various trade associations. Following a
theoretical framework (Chapter 2) and the methods deployed (Chapter 3), the thesis is
presented as a series of three papers (Chapters 4 to 6).
Chapter 4 finds that TAs have certainly been recognized as a platform for developing
international networks. This study identifies three roles looming large in the existing studies:
industry voice, broker, and counsellor. In these three roles, TAs collect and disseminate
information and have a substantial influence on the internationalization of Chinese firms.
This chapter also pinpoints two types of TAs that have been coexisting in China, namely,
government-organized TA and grass-roots TA. This study captures nuanced differences
between these two types of TAs in serving the three roles.
Chapter 5 examines the way in which TAs are affecting internationalization of Chinese firms.
In this chapter, the three roles of TAs in Chapter 4 are examined in association with
knowledge acquisition. The chapter identifies TAs’ expertise and capacity to motivate the
knowledge development of member firms and finds that the empowerment of TAs enables
them to represent member firms and mobilize resources for their member firms. Results show
that a stronger engagement with TA has a positive effect on knowledge acquisition.
Institutional market knowledge and network knowledge arise from the findings.
Chapter 6 discusses possible extensions of the findings in Chapter 4 and 5. Beyond gauging
an impact on a broader definition of internationalization, this chapter focuses on overseas
foreign direct investment (OFDI), a specific stage of internationalization. TAs are conceived
of as a catalyst to promote OFDI strategy in Chapter 6. This paper conceptualizes that a firm
enhances its managerial ties through interlocking connections with other TA member firms,
and acquires organizational learning to boost OFDI activities.
This study addresses a need to understand and foster greater awareness of the role of TAs in
the internationalization arena. This thesis contributes to international business theory by
emphasizing how TAs gauge influence on the business practice of member firms.