This article tests hypotheses on the relationships between the nationa
l characteristics of state, economy, and business culture and the orga
nizational character and political role of business associations, draw
n from the international literature on business associations,. against
new empirical evidence from Australia. Australia's weak state structu
res, fragmented economy, and firm-centered business culture produce th
e expected pattern of fragmented business associations engaged in trad
itional forms of policy advocacy, lobbying, and pressure pluralism. Ho
wever, these findings need to be qualified in three ways. Not all asso
ciations fit the hypothesized relationships; there have been significa
nt recent attempts to overcome associational fragmentation through ad
hoc, issue-based coalitions; and evidence indicates a shift from lobby
ing functions toward quasi-governmental roles in the public policy pro
cess. These qualifications call for rethinking of Australian business
politics and speak to wider theoretical issues about the extent to whi
ch macro political and economic structures shape political behavior.