Study On The Function Of Association In The Process Of Industry Chain Integration

Generally associations work for its own industry, ignore the effect of whole industry chain, be disconnected with upstream and downstream companies and associations. But more and more, companies gain their competitive strength from integration of supply chain, like Walmart and Toyota. For now, competition is more than just between companies but between supply chains. So, more than ever, associations need to think out of its own industry, to the whole industry chain, and cooperate with members with deeper perspective.This paper firstly illustrates the function of association in existing theories. Secondly, it introduces the new studying on integration of industry chain: in new theory, it divides integration into products integration, value integration and knowledge integration, and points out the knowledge integration is essential part of industry integration and the source of new value creation. Then it bring forward that other than traditional property right involved horizontal and vertical mergers, there are some new non-property-fight-related modes of integration. Based on these, this paper assumes that associations could get involve into the industry chain integration as an initiator, planner and supervisor.Thirdly, this paper take International Copper Association for instance, detailed demonstrates how its Copper Decorative Building Products project planned and executed the industry chain integration with companies in up/downstream and even in other industry, to meet the need of its members and achieved a win-win result with all parties involved.The new idea this paper brings is the finding and demonstration of the new function of association, which expanded the exiting theories. Meanwhile, it also wishes the other associations, especially the associations in China can benefit from this paper.