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This article explores the institutional characteristics and capacity of the BAs to effectively perform the representative and service delivery functions for their members. Based on a qualitative study of BAs in Tanzania, it is evident that they were inclined to deliver the influence function and compromised the service function. The main institutional capacity gaps found in BAs were inadequate governance and accountability, inadequate management and staff, weak membership base, lack of membership and communication strategy, and inadequate office facilities and information technology platforms. Although they had partnerships and networks with the government, development partners and other associations, their sustainability was not guaranteed mainly because of overdependence on donor funding and insufficient membership subscriptions. The article advances the collective action theory and corporatism view by proposing a strategic bundling approach that advocates integrating the service, influence and strategy logics to enhance sustainability of BAs.

Assessing Institutional Capacity of Business Associations in Tanzania