The Australian Information Industry Association (AIIA) and Australian Electrical and Electronic Manufacturers' Association (AEEMA) in April last year floated the possibility of a merger.
However a joint steering committee setup to investigate the idea concluded the two organisations were too diverse.
"Significant structural challenges were identified during the formal due diligence component of the investigation," an AIIA statement said.
"While synergies exist between the two membership bases, the core elements of both organisations proved too complex to merge effectively into a structure representing the diverse membership covered by both AEEMA and AIIA."
While the merger will no longer proceed, the associations announced they would work together on new opportunities in areas such as export promotion, e-health, standards, and industry events.