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The purpose of this paper is to establish the importance and approaches in securing an organization's legitimacy from the network community of customers, suppliers and manufacturers, including private investors and state‐owned institutions when marketing their products.

The paper presents an inductive interpretative approach complimented by action‐based research founded on inquiry and testing.

The paper finds that the key to legitimacy success involves using legitimacy orientations to demonstrate commitment to the interests of constituents, acquiring legitimacy from them, but concurrently considering the central government's influence on a firm's legitimacy performance.

The multiple interactions proposed in this paper remain untested and might have to be modified pending further empirical testing and analysis.

In China's telecommunication market, a company's legitimacy emanates first and foremost from the development and commercialization of innovative and creative technological solutions. This requires good, creative management of technological resource and activity links, connecting the company's technology to network constituents which include local manufacturers, carriers, software developers, investors.

This is the first published paper that examines the proposed interactions among legitimacy orientations, alignments, and performances from a “market‐as‐network” perspective in a dynamic, transitional Chinese telecommunication market.

The purpose of this paper is to identify why and how organizational network legitimacy facilitates firms' access to knowledge networks and reciprocal knowledge exchange between stakeholders.

The study involves a managerially oriented inductive interpretative research, with empirical evidence sourced from a single in‐depth case study, complemented by hands‐on experience with the industry.

Subsidiaries of multinationals operating in China's politically sensitive and protective mobility technology market have stronger proactive and collaborative aspirations towards exploiting emerging technological opportunities in the external environment and developing technological capabilities because they are more inclined to pursue organizational network legitimacy initiatives.

How organizational network legitimacy is produced, where does it become manifest, and at what administrative layers within China's politically sensitive and protective telecommunications are systematic empirical research questions that could be examined in the future.

Internalizing, driven only by market and/or technology legitimacy, falls short of realizing the organizational network legitimacy goal. It must also include cognitive understanding of the net sum of relational, investment and social legitimacies, as these are cognitively binding as well as benefiting with respect to subsidiaries of multinationals in accessing knowledge networks.

The paper underscores the importance of studying organizational network legitimacy and how it impacts on firms' access to knowledge networks, in a politically sensitive and protective Chinese mobility technology market.

The purpose of this paper is to understand how important networks are for the emergence and growth of social enterprises as well as how social enterprises use their networks throughout the life course of their organisation. A comparative approach is used by contrasting social enterprises with traditional commercial enterprises along the dimensions of obtaining resources and legitimacy through their networks.

An abductive approach is used starting from existing knowledge on how commercial enterprises use networks during the start-up and growth of their enterprise. Qualitative interviews with 23 entrepreneurs were conducted. Using a matched-pairs design, the network importance and use of social and commercial enterprises is compared.

It is found that networks are highly important for both commercial and social enterprises throughout their life course. However, they substantially diverge in how they use their networks. Social enterprises tend to access more intangible resources through their networks than do commercial enterprises. Moreover, social enterprises rely more strongly on their networks for legitimacy in both the start-up and growth phase of the enterprise.

This paper takes a novel approach by empirically comparing the networks of social and commercial enterprises. New insights are offered in the resource flows within networks and how entrepreneurs use resources obtained from their networks.

A centuries-long history of theory and research shows that every authority system tries to cultivate a belief in its legitimacy. This paper focuses on the legitimation of regimes – social relationships and the rules that govern them. We use existing theory and research to identify a basic legitimation assumption that includes four conditions necessary to establish legitimacy. We also identify four corollaries of the assumption and use our own published and unpublished laboratory research to show (1) how successful experimental procedures satisfy the assumption’s conditions, and (2) how the failure of experimental procedures to establish legitimacy violate the assumption and its corollaries.

The establishment of legitimacy is one of the critical issues faced by international projects that involve a host of stakeholders and are implemented in challenging institutional environments. The purpose of this paper is to examine the establishment of legitimacy and factors that affect this process in the context of international projects.

A qualitative, multiple case study of three international projects conducted in challenging institutional environments.

Based on a theoretical and empirical analysis of three case projects, the article identifies different strategies that may be enacted to gain project legitimacy in international projects. Furthermore, a set of propositions that describe the effects of different factors (the project's external environment, the project network, the process of legitimation) that explain the extent of the challenge faced by international projects in establishing legitimacy are developed.

The article sets the scene for theory development on project legitimacy. A better understanding of legitimation strategies and of the factors that affect the establishment of legitimacy in international projects advances research on project‐environment interaction and supports managers in proactively managing project legitimacy.

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.

This paper, through empirical evidence, presents a framework for exploring how entrepreneurs navigate the challenges of building legitimacy in a digital context. In so doing, this paper goes beyond the seemingly forgone conclusion that legitimacy is important for the entrepreneur's success by focusing on the contextualised mechanisms through which digital legitimacy is built.

Empirical findings are drawn from semi-structured interviews conducted with 21 digital entrepreneurs in Nigeria, a leading example of the West African context and analysed using a phenomenological approach.

The paper shows how digital entrepreneurs in a non-Western context draw on an aspect of legitimation in the digital space, and in particular, highlights three mechanisms via which this takes place, namely: digital shielding, digital curating and digital networking. Presented via an inductive approach, the three mechanisms described in the paper provide a scaffold for thinking about and understanding entrepreneurial legitimacy within a contextual framework, which incorporates institutional, cultural and digital dimensions.

This paper contributes to the literature on digital entrepreneurship by empirically identifying and theoretically elaborating themes that are important for understanding how entrepreneurs navigate the challenges of digital entrepreneurship and build entrepreneurial legitimacy in complex contexts.

The paper aims to explore how small- and medium-sized enterprises (SMEs) in the health-care sector overcome the liability of being an outsider, instead of gaining a position as an insider in new networks in markets abroad and subsequently internationalizing. The following research questions are posed: How do firms in complex health-care markets build network relationships? How is business market knowledge developed and legitimacy acquired to overcome the liability of outsidership?

The paper uses a multiple-case methodology in a nested case study of health-care SMEs, which allows for in-depth study of the importance of network relationships, business market knowledge development and legitimacy building to enter a target market; the study maps the activities and different actor roles as the entry process unfolds. The study draws on empirical evidence from 13 companies as well as industry and interest organizations.

The results provide support for process-based explanations of how, but also of why the internationalization of health-care SMEs takes place in distinctive sequential phases, where it is necessary to complete one phase before it is possible to embark on the next. The study answers the calls for more empirical studies capturing how firms actively enter networks to overcome the liability of outsidership, become insiders and subsequently internationalize.

The principal contribution of the authors’ study is to add to the body of research on internationalization and advance the understanding of how to build an insidership position in relevant networks by overcoming the liability of outsidership. By choosing to study firms in the health-care sector, the authors also contribute to the limited research on firms entering markets characterized by a high level of complexity.

The purpose of this study is to investigate the influence of network relationships and institutional environment on premium winegrowers’ internationalization process.

This study uses a case study approach to examine two premium wine producers engaged in internationalization. The data sources consist of semi-structured interviews, observations at three major events and secondary data sourced from industry reports and materials that are available online.

Findings illustrate that both personal and inter-firm networks help wineries to internationalize. Inter-firm networks play a significant role in gaining international legitimacy. Personal networks were found to be more important in establishing brand authenticity that facilitates wineries in their internationalization process. Gaining international legitimacy and establishing brand authenticity are crucial in the successful internationalization of premium wineries.

This study provides an explanation of how networks can be put into institutional context. Future studies could map out the formal and informal institutions within the wine industry and investigate the closer dynamics among the different actors in the whole network. A whole network is formally structured and governed, yet still built on the relationships among members, making it a very complex phenomenon. This would allow the evaluation of multilateral ties that link firms and actors within the network and how this affects the internationalization process.

This paper provides managers with insights on how they can capitalize on their inter-firm and personal networks to help them deal with domestic and international institutional environments when embarking on internationalization activities.

This paper adds to the existing literature on networks relationships and provides an important link between networks, institutions and internationalization.

This paper aims to examine a type of interorganizational learning called Industry Peer Networks (IPNs), in which a network of non-competing small businesses cooperates to improve their skills and to stay abreast of the industry trends, so that the firms remain competitive in the local and regional markets. The key characteristic of an IPN is the regular gathering of peers in small groups (typically 20 or fewer carefully selected members) in an atmosphere of significant trust, guided by a facilitator, to participate in a series of formal and informal activities through established guidelines, to share knowledge about management and marketing, exchange information about industry trends beyond their core markets, discuss issues related to company performance and provide constructive criticism about peer companies.

The qualitative research on the context included visits to 13 peer meetings, three workshops for peer members, seven semi-structured interviews with members and many communications with the founder, chairman, committee chairpersons and several facilitators of peer meetings that spanned across five years. Data collection and analysis followed grounded theory building techniques.

The authors identified both cooperative and competitive learning practices that a small business could carry out to grow from a novice to an expert IPN peer member. The cooperative elements such as peer discussions, disclosure of financial data and exposure to various business models allow member firms to learn vicariously through the successes and/or failure of their peers. At the same time, the competitive elements such as service delivery critiques, business performance benchmarking and firm ranking also prompt the members to focus on execution, to emphasize accountability and to strive for status in the network. The IPN in this research has also built network legitimacy over time, and it has sustained a viable administrative entity that has a recognizable form and structure, whose functions are to strategically manage network activities and network growth to attract like-minded new members.

First, because this research focused on fleshing out the transformative practices engaged by IPN peers, it necessarily neglected other types of network relationships that affect the small businesses, including local competitors, vendors and customers. Second, the small employment size of these firms and the personal nature of network ties in the IPN may provide an especially fertile ground for network learning that might not exist for larger firms. Third, the technology-intensive and quality-sensitive nature of IT firms may make technological trend sensitization and operating efficiency more competitive advantages in this industry than in others. Finally, although participation in IPN is associated with higher level of perceived learning, the relationship between learning and business performance is not yet articulated empirically.

The study contributes to the understanding of cooperative/competitive transformative practices in the IPN by highlighting the defining features at each transformation stage, from firms being isolated entities which react to market forces to connected peers which proactively drive the markets. IPNs are most effective for business owners who are at their early growth stage, in which they are positioned to grow further. Nevertheless, the authors also present the paradoxical capacity of IPNs to propel firms along trajectories of empowerment or disengagement.

As 78.5 per cent of the US firms are small businesses having fewer than 10 employees, the knowledge of firm and IPN transformation is important for both researchers and advocates of small businesses to understand the roots of success or failure of firms and the IPNs in which they are embedded.

Earlier research has not explored the network-level effects as part of a full array of outcomes. Instead, research involving IPNs has focused primarily on the motivation and immediate firm-level outcomes of IPNs. Research to this point has also failed to examine IPNs from a developmental perspective, how the firms and the IPN as a network transform over time.