Trade Associations and the Legitimation of Entrepreneurial Movements

Abstract

Trade associations are an important topic of investigation for nonprofit and voluntary sector researchers because they serve civic purposes and help to support innovative areas of entrepreneurship. We examine how local trade associations in the emerging gourmet food truck industry help to reduce uncertainty and augment industry legitimacy by (a) representing collective interests when challenged by regulators and incumbents (e.g., restaurants), (b) generating collective identity and creating cultural capital, and (c) providing a regime to manage “tragedies of the commons,” procure club goods, and promote self-regulation. We draw on social media data and narrative accounts by industry activists to explicate the evolution of the field from 2008 to 2012 in 11 cities. Findings suggest that trade associations, as an often-overlooked type of mutual benefit association, are key players in the legitimation of creative industries.