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The purpose of this paper is to analyze the formal political, legal and economic institutional legitimacy challenges for (US-based) multinational corporations (MNCs) attempting to enter the Cuban market, discuss the key local constituencies in Cuba that are able to grant legitimacy and sketch out respective strategies to deal with each of these formal institutional challenges.

A qualitative research approach comprising semi-structured executive interviews was used, combined with the analysis of media accounts and recent governmental policies and developments. The authors interpreted the gathered data and information based on institutional theory.

This paper sketches out specific legitimacy challenges for (US-based) MNCs when entering Cuba and discusses strategies to manage these challenges.

The authors provide an application of institutional theory in the specific context of Cuba and so demonstrate the value of applying this theoretical lens to better understand the local legitimacy processes in this particular emerging market environment.

This study presents a framework of strategies (US-based) MNCs may use to inform their entry strategies into the Cuban market, based on an analysis of the local institutional environment, legitimacy pressures and constituencies able to grant or withdraw the approval and support of foreign MNCs.

This paper is an original application of institutional theory to the emerging market of Cuba using a qualitative research approach, and so contributes to an emerging stream of research studying this market context from an academic and practical perspective.

The purpose of this paper is to examine how a clustered foreign firm’s network ties of social capital and government relationship may affect its institutional legitimacy and performance for clustered firms in emerging economies. To accomplish this task, the authors identify network ties (e.g. bridging ties and strong ties) and show, for each, the direct effects on institutional legitimacy and organizational performance. The findings show that bridging ties, strong ties, and government relationship directly and significantly impact organizational performance.

This study used the two-step approach suggested by Anderson and Gerbing (1988). The first step uses confirmatory factor analysis to validate the psychometric properties of the measurement scales. The second step then uses structural equation modeling to examine the proposed hypotheses. The statistical software LISREL 8.80 was used for the data analysis.

This paper finds that industrial clusters serve an important legitimizing function for clustered firms. The corporate ties (both bridging and strong ties), institutional legitimacy, and governmental relationships all play a positive role in organizational performance in emerging economies. The government relationships are also found to have a positive effect on institutional legitimacy. The institutional legitimacy can develop from industrial clustering. The foreign enterprises within a cluster should pay attention to their vertical and horizontal relationships.

First, the questionnaires cannot be verified if these instructions were followed in each instance (because the responses were simply returned by mail). Second, this study grouped all foreign firms into one cluster. Other foreign firms may find that culture has different effects on their organizational performances in emerging economies. Third, the relationships and impacts of various factors were not investigated within the theoretical framework proposed in this study. Fourth, the study did not address the heterogeneity of domestic and foreign firms. Fifth, the study only focusses on the textile industry.

The institutional legitimacy can develop from industrial clustering. In order to make a good impression on the local government, clustered firms should adhere to government policy, hire more local workers and buy local raw materials. The foreign enterprises in emerging economies should recognize that, being inside of an industrial cluster, it is important to have strong ties with other cluster members and to interact frequently and honestly with the relevant government agencies and organizations. To enrich resource-utilizing and reduce their liability of foreignness, foreign firms within clusters should seek to increase their firms’ network ties and establish good relationships with local governments to obtain competitive advantage.

This study aims at filling that gap by using the concepts of strong ties, bridging ties of social capital, institutional legitimacy, and government relationship to understand how clustered firms influence institutionalization through corporate strategies. The analysis not only helps extend the literature on network ties configuration, but also expands the literature on institutionalization. The study explores how clustered firms actively built up their own advantageous positions and then combine these with their original passive interests to favorably enhance their competitiveness in rapidly changing and institutionally unstable emerging economies.

First, connects existing theories to provide an integrated theoretical framework for understanding the roles of social capital and institutional legitimacy. Second, provides evidence to the literature by examining how network ties and government relationship may jointly influence the performance for clustered foreign firms in emerging economies, an area largely ignored in prior research. Third, provides one theoretical lens through which different outcomes of social capital and institutional issues can be analyzed. Fourth, the authors put forward a relationship capability and an institutional capability model to study how firms can avoid risk and obtain benefits by clustering in emerging economies.

Research suggests that context matters for MNEs’ international business strategy. MNEs’ strategies vary when different intertwined contexts interact with each other. While International Business scholars understand well the influence of the institutional environments on firms’ international strategies and operations, some contextual differences are less understood as is the case involving African countries and firms. In this study we investigate how different institutional contexts and legitimacy challenges combine to impact ownership strategic choices of African firms in their cross-border acquisitions (CBAs). Specifically, we study the influence of the host country institutional development and two institutional dimension distances: administrative distance and knowledge distance. Methodologically, we use a sample of 314 CBAs made by acquirers from 24 African countries in 71 host countries worldwide to test a number of theoretically driven hypotheses. This study contributes to our understanding of how foreign investors from less institutionally developed countries that are more likely to face higher legitimacy barriers use ownership strategies to achieve legitimacy abroad.

The purpose of this study is to develop a cross-level model of legitimacy-driven institutional change in a Chinese management context; in other words, changes that start out as legitimacy gaining processes by green enterprises but result in a shift in field-level market logic.

A case study using a historical inquiry approach and in-depth interviews has been used to qualitatively analyze the authors’ case in the Chinese photovoltaic industry.

The study proposes a cross-level explanation of institutional change by demonstrating how institutional change can create market forces at a field level that seemingly originate from an increase in the number of legitimated enterprises. This may negatively influence enterprises’ ongoing legitimacy gaining process for their survival at the organizational level in an institutional environment.

The theoretical perspective helps improve descriptions of institutional change and develop a much-needed multi-level understanding of green enterprises in the highly institutionalized green industry. However, this case study may raise the concern of generalizability; thus, an additional survey is necessary.

As organizational field-level market forces are endorsed and transformed in the legitimacy gaining activities of green enterprises, a green enterprise manager should be aware of its negative impact on their legitimacy gaining process and ultimate survival.

The authors’ model proposes a cross-level explanation of institutional change by demonstrating how institutional change can create market forces at a field level that seemingly originate from an increase in the number of legitimated enterprises. Consequently, this may negatively influence the enterprises’ legitimacy gaining process.

This paper aims to deal with the concepts of “institutions” and “institutional logics” in the context of business-to-business (B2B) marketing systems and uses institutional theory as a framework to look at value co-creation.

By integrating the literature on value co-creation, institutional theory and institutional entrepreneurship, the paper argues that the boundaries of B2B marketing systems are continuously reshaped through legitimation processes occurring through actors’ institutional work, thus making co-created value the only legitimate value.

The paper proposes a conceptual framework and furthers the conceptual development of value co-creation and augments the literature on service-dominant logic and the notion of co-created value by assuming a legitimacy-based B2B market systems perspective.

This paper presents a number of propositions that serve to illustrate several managerial implications. These arise from organizations co-creating value by conforming to the various institutional logics that maximize their legitimacy.

The paper makes a contribution by developing a critical theoretical framework based on the application of institutional theoretical constructs/concepts (e.g. ceremonial conformity, decoupling, considerations of face, confidence and good faith).

This paper aims to examine how a combination of legitimacy needs and actions (LNAs) can shed light on the legitimacy behaviour of private higher education institutions (PHEIs) operating in an institutional business environment that is witnessing significant public–private sector role reversal. The legitimacy process is promoted as an exemplar to inform the increasing number of public–private sector role reversals in the utility, transportation, health and telecommunication sectors.

Based on empirical evidence, this paper triangulates data from archival policy announcements, retrospective case studies and face-to-face interviews. A replication logic methodology was used to establish LNAs and categorized themes.

The findings show that market, relational, investment, alliance and social legitimacy needs are crucial drivers for PHEIs when hybridizing their legitimacy practices, especially during critical phases of institutional reform. The proposed conceptual framework demonstrates how the legitimacy construction process is the result of internal development and external validation.

In providing some empirical descriptions and generalizations, the model makes limited attempt to determine with any specificity how PHEIs interact with their institutional environment, beyond a process of data triangulation.

The proposed LNA framework is especially relevant in industries where the government has historically been a major institutional stakeholder, but where market liberalization is leading to increasingly active participation by the private sector. Findings can help PHEIs deal with reform policies by establishing deep and varied expertise inside their organizations and through links with international universities, industries and government agencies enable knowledge exchange, transfer, partnerships and the development of alliance capitalism.

This study provides a more comprehensive approach for theorizing the interrelatedness and embeddedness of organizations with common business and institutional demand factors and linkages and their changing roles, particularly the multi-scale impacts of LNAs on legitimacy sustainability.

The predominant narrative is that contemporary organisations, motivated by economic-rationalist aspirations, adopt cloud applications on the premise of achieving cost-savings and efficiency gains. However, how they actually adopt and rollover such new or emerging technologies may be influenced by acts, patterns and processes of institutional legitimacy. Therefore, the purpose of this paper is to explore the dynamics surrounding decisions on how specific cloud applications are adopted from the context of institutional theory, with a particular focus on the concepts of coupling and decoupling.

To examine this phenomenon, two qualitative case studies, using a reflexive research approach, of an Australian and a Swedish university have been undertaken, both of which adopted commercial cloud applications for e.g. e-mail, collaboration and storage (as examples of software as a service) at different points in time. One of the universities was known for its early adoption of cloud applications, but had decelerated further deployment of such services, while the other, despite its conservative reputation, has made rapid strides in this regard.

The findings of the dual case studies reveal that organisations, contrary to economic-rationalist claims, may or may not decide to adopt particular commercial cloud-based offerings for the support of core operations, on the basis of how they perceive their institutional legitimacy being affected by a complex network of influential actors, both internally and in the external spaces. Therefore, this paper offers an institutional theory-based discourse and rich illustrations on how the role of technology is played out in enhancing relationships between an organisation and such actors in terms of legitimacy focusing acts of coupling and decoupling.

In the analysis and findings the authors, in a novel way, illustrate how organisations strive for: institutional legitimacy through acts of coupling, and the revelations of consequential decoupling. The value is based on a rich case description, analysis and application of institutional theory.

Organizational identity and organizational legitimacy are related constructs, but comprehensive studies of the relationship have been lacking in the literature of organizational studies. This paper aims to propose a framework that includes four possible relationships between organizational legitimacy and identity.

The authors evaluate the causes of each of these relationships and an important consequence of the relationship: their influences on organizational adaptation.

With a series of propositions, the authors make a tentative, but valuable, move toward integrating two broad streams of social perspective of organizing, institutional theory and organizational identity and call for research efforts in this direction.

The paper is the first one that explores the relationship between organizational identity and organizational legitimacy in a comprehensive way.

Drawing on institutional theory, this study seeks to advance the understanding of how the indirect effect of exporters' adoption of an international adaptation strategy on export performance via enhanced legitimacy is differently moderated by formal and informal institutional distances from the host country market.

Survey data were collected from a sample of 251 exporters in China and analyzed with a multiple regression model to test the hypotheses.

Exporters' use of an international adaptation strategy affects their perceived legitimacy, which in turn influences their export performance. Moreover, formal institutional distance strengthens the indirect effect of an international adaptation strategy on export performance via legitimacy, whereas informal institutional distance weakens this indirect effect.

The study contributes to the knowledge of how and when adoption of an international adaptation strategy by exporters benefits export performance from an institutional perspective.

This study aims to examine the relationship between institutional logics and specifications quality, and how this relationship is mediated by the legitimacy of the procurement process and stewardship behaviour.

This study draws on insights from institutional logics theory, and legitimacy and stewardship behaviour literature. We conducted an extended literature review to gain a comprehensive understanding of “institutional logics” and their manifestations in organizational contexts, utilizing the 2000–2024 data collected from the EBSCO, Scopus and Web of Science databases, complemented with Google Scholar. We gather that institutional logics manifest in several forms, and that while some organizations may thrive on a single logic, in certain contexts institutional logics can manifest in combinations – “multiple logics or hybrids”. Based on this understanding, we developed testable research hypotheses, predicting the influences of institutional logics – professional logic, efficient service logic and delivery (market) logic, on legitimacy, stewardship behaviour and specifications quality. We then carried out an empirical study, adopting a quantitative cross-sectional survey design with a self-administered questionnaire to test the hypothesized relationships. The empirical data were obtained from 162 procuring and disposing entities in Uganda and analyzed using the partial least squares structural equation modelling technique.

The study findings reveal that institutional logics exert a strong positive effect on the legitimacy of the procurement process and on stewardship behaviour, which, in turn, both positively influence specifications quality.

The study findings have implications for theory and practice. The study findings provide useful insights that support the conceptual and theoretical development of institutional logics theory and applications in procurement literature. In addition, the study findings enhance procurement managers’ understanding of the mechanisms through which institutional logics can foster specifications quality. However, considering the fact that the study was conducted in a single country context, and focused on the public sector only, the findings of the study might not be generalizable globally.

This study contributes to established knowledge about quality management and procurement by examining the legitimacy of the procurement process and stewardship behaviour of those involved in procurement processes as mechanisms through which procuring entities are able to use institutional logics to enhance specifications quality. In addition, the study highlights areas for future research that may be explored to increase understanding of the value of institutional logics in ensuring specifications quality, and the link between specifications quality and the general performance of procuring entities.