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This paper analyzes a multidimensional model of organizational legitimacy, competencies, and resources in order to develop the linkage between institutional and resource-based perspectives by systematically detailing relationships among these factors and organizational viability. The underlying mechanisms of isomorphism and market partitioning serve as a point of departure by which the effects on organizational persistence of two sociocultural processes, cultural (constitutive) legitimation and sociopolitical (regulative) legitimation, are distinguished. Using data on 589 national self-help/mutual-aid organizations, this chapter explores how isomorphism and market partitioning foster legitimacy and promote organizational viability. Results show that the more differentiated an organization’s core competencies and resources, the greater the sociopolitical legitimacy; the more isomorphic an organization’s competencies and resources, the greater the cultural legitimacy. The latter isomorphic processes, however, do not promote greater organizational viability. In fact, while isomorphism legitimates with respect to cultural recognition, it is heterogeneity, not homogeneity, that promotes organizational survival.

How do radical technological fields become naturalized and taken for granted? This is a fundamental question given both the positive and negative hype surrounding the emergence of many new technologies. In this chapter, we study the emergence of the US nanotechnology field, focusing on uncovering the mechanisms by which leaders of the National Nanotechnology Initiative managed hype and its concomitant legitimacy challenges which threatened the commercial viability of nanotechnology. Drawing on the cultural entrepreneurship literature at the interface of strategy and organization theory, we argue that the construction of a naturalizing frame – a frame that focuses attention and practice on mundane, “rationalized” activity – is key to legitimating a novel and uncertain technological field. Leveraging the insights from our case study, we further develop a staged process model of how a naturalizing frame may be constructed, thereby paving the way for a decrease in hype and the institutionalization of new technologies.

Previous research suggests that constructions of legitimacy play a central role in the development of markets, yet little attention has been given to how that legitimacy is constructed through the material practices of market actors. This paper aims to address this gap via an examination of cultural intermediaries in the fine wine market of Shanghai.

An interpretive thematic analysis was carried out on data from 13 semi-structured interviews with fine wine intermediaries based primarily in Shanghai (5 wine writers/educators; 5 sommeliers/retailers; 3 brand representatives).

The dimensions of the legitimation of wine were examined, identifying three key themes: the legitimacy of intermediaries as experts; the legitimacy of a particular mode of wine consumption; the legitimacy of the intermediaries as exemplars for not-yet-legitimate consumers. These findings suggest that cultural intermediaries’ personal, consuming preferences and practices are significant to the formation of a new market, and that they must negotiate potential tensions between interactions with legitimate, not-yet-legitimate and illegitimate consumers.

Limitations with regard to generalizability are discussed with regard to potential future research.

The focus on cultural intermediaries and dimensions of legitimation can be used to examine the case of other emerging markets to anticipate the pathways to institutionalizing new forms of taste and consumption practices.

The paper offers an empirical insight into the market dynamics of distinction in the Shanghai wine market and conceptual insight into the importance of cultural intermediaries as exemplar consumers.

The objective of this paper is to critically examine the Canadian Accounting Standards Board's (AcSB) legitimacy management strategies directed toward financial statement users.

Suchman's legitimacy typology is used as a lens through which the AcSB's legitimacy management strategies directed toward users are analyzed. The data sources consist of documentary public information available for the overall Canadian standard‐setting process and for a sample of standard‐setting projects.

The results indicate that the AcSB devotes much more efforts to symbolic features and cultural accounts than to pragmatic concerns to ensure its legitimacy toward financial statement users. The legitimacy management strategies used mimic those in the USA and at the international level. Such an isomorphism contributes to the AcSB's cognitive legitimacy and overall cultural legitimacy.

Future research could assess a standard‐setting institution legitimacy management strategies directed to other audiences such as preparers, auditors, or other groups that fall under a broader public interest umbrella.

The results provide Canadian users with a general picture of the AcSB's efforts in their regard and invite them to be sceptical and critical about the so‐called user perspective in standard setting. It also provides standard setters with a legitimacy framework that they can use to identify areas for improvement to enhance users' view of their legitimacy and to help them better fulfil their mission statement.

This paper innovates by studying a standard‐setting institution legitimacy management strategies directed toward a specific audience, financial statement users.

The purpose of this study is to examine the International Accounting Standards Board (IASB)’s response to criticism and political pressure at the time of the global financial crisis through the lens of legitimacy theory.

This study constructs a thick description about a causal mechanism between social crisis and organizational change using a process-tracing approach that combines a historical narrative and a theoretical consideration.

The IASB faced criticism of its accounting standards for financial instruments and its governance structure during the financial crisis. This criticism represented the crises of pragmatic and cultural legitimacy. Facing these legitimacy crises, the IASB adopted such legitimation strategies as normalization and restructuring to repair its legitimacy. Additionally, in these repairing processes, the IASB, as a bonus, became institutionally embedded itself in the global political arena and succeeded to strengthen its legitimacy.

The study suggests that the financial crisis had a significant impact on the standardization of transnational accounting. Indeed, the crisis was an important turning point of the IASB’s work on revising its accounting standards to reduce complexity and altering its Constitution. Moreover, the authors bridge the gaps in the literature on accounting and legitimacy by examining how the IASB used particular legitimacy repair strategies when facing its legitimacy crises

This study contributes to a better understanding of the important actor-specific, micro-level legitimacy dimensions in dynamic entrepreneurial ecosystems (EEs).

Using an embedded case study approach and rich longitudinal data collected over 16 years within a French EE, the study analyzes the legitimacy gaining process of two actors coming from opposite founding conditions.

Three dimensions of legitimacy (3L) are necessary to be accepted as functional actors within EEs: institutional legitimacy (IL) refers to the EE's acceptance of an actor as an institution active in the field of entrepreneurship; cultural legitimacy (CL) means that the actor is recognized as possessing and promoting values considered appropriate by the entrepreneurial community; relational legitimacy (RL) relates to the willingness of the entrepreneurial community to interact with the actor. These are complementary dimensions that members of EEs need to possess to acquire full legitimacy. Different paths are possible to achieve this full legitimacy.

Replicating the study with a comparative approach including more actors could represent an interesting avenue for research.

This research provides insights into the underlying dimensions of legitimacy in EEs, how various actors gain legitimacy in such contexts and how this influences the dynamics of EEs.

The results provide novel insights into the issue of legitimacy in EEs and legitimacy theory in general.

The purpose of this paper is to investigate inhabitants of Finland and their continuing efforts to narrate a national identity within the constraints imposed by discursive meanings of Finnish culture through the experience of sauna.

Data collection comprised semi-structured interviews with Finnish local residents and entrepreneurs; these were supplemented with secondary data including books, articles, advertisements and documents referencing sauna in the context of Finland.

The analysis and interpretation by the authors show that the symbolic resource of sauna constitutes the legitimation of Finnish nation branding discourses at three levels: regulative, normative and cultural-cognitive; we label these sauna governance, communal identity creation and mythmaking, respectively.

The research contribution reveals that nation branding discourses are also forms of legitimation work. Finnish nation branding discourses are interwoven with sauna as the symbolic resource of “Finnishness” and become conduits for the expression of discursive meanings. This demonstrates that institutional legitimacy is an intrinsic aspect of the ways place branding discourses can be used as a mode of governance (i.e. a policy instrument).

This paper is a study of creating organization in the case of cultural projects; cultural entrepreneurship. This includes taking advantage of opportunities and using ones social capital through networks. It is a case study of Vandalorum which is an Swedish international art and design centre with a strong regional connection. They want to offer close collaborations between artists, designers and the creative industry. It is located in Värnamo in the south of Sweden and was inaugurated in April 2011 after an establishment process running over 15 years. Renzo Piano has created the architectural concept of Vandalorum, inspired by traditional Swedish materials and building techniques. The paper aims to discuss these issues.

Through interviews with significant actors over many years and secondary analysis of data collected by others the authors describe and analyze the establishment process of Vandalorum Art and Design Centre.

The case of Vandalorum shows that organizing a cultural project like Vandalorum is characterized by no well-defined starting and stopping point, but – quite typically for entrepreneurship as an organization-creation process – builds momentum and legitimacy narratively.

The originality lies in answering the question that the authors chose to focus on, which is embedded in the opening story of Vandalorum: how can such a cultural project become legitimized in a place like that, outside and rather far from any large city? In a changed cultural landscape with reduced public contributions, the claim is that it is crucial to legitimize the idea and project in relation to the main/key stakeholders. Such legitimization is a key entrepreneurial achievement.

This paper aims to analyse how sustainable second-hand stores (SSHSs) use storytelling as a legitimization strategy. Second-hand stores have traditionally relied on a charity identity to attract customers. More recently, changing market demands, the growing popularity of second-hand shopping, “vintage” and online shopping have opened up new opportunities for these social enterprises (SEs). This study asks how SSHSs can maintain their legitimacy with incumbent stakeholders while also exploiting these new opportunities.

This paper uses an abductive approach starting from existing knowledge on how storytelling builds legitimacy in conventional enterprises. The authors collected qualitative data and interviewed owners and managers of second-hand stores in the Netherlands. This paper specifically looked at how second-hand stores are using their web shops to convey stories and build legitimacy with (new) audiences.

Contrary to the authors’ expectations, they found that the web shop is not used as a site for storytelling the mission of the store but is rather a stage for specific products that tell a story of trendy and vintage shopping. This attracts a new customer segment to the store that conventionally does not shop there. This paper concludes that second-hand stores use vintage products as symbols in storytelling through their web shop to gain access to a new market. By foregoing to tell the story of their mission on the web shop, the second-hand stores are choosing to keep their charity and business identity separate.

To the best of the authors’ knowledge, this paper makes an original contribution by analysing how second-hand stores are actively exploiting new opportunities created by a changing market context and seeking to maintain legitimacy while doing so. This paper argues that legitimacy is not a static “reward,” rather, something that evolves with the enterprise. This research adds to the body of literature on legitimacy and more specifically cultural entrepreneurship, which holds that entrepreneurs can actively gain and maintain legitimacy through storytelling.

The transition from fossil fuels to renewable energy such as solar energy is difficult and requires significant ongoing public policy marketing initiatives. Drawing on institutional theory, this paper aims to explore how public policy marketing initiatives through institutional narratives and discourses legitimize solar energy's sustainable consumption in a developing economy.

Using a post-structuralist approach, the authors undertook a thematic analysis to study the process of sustainable consumption. The authors conducted face-to-face interviews with key stakeholders in the solar energy sector and complemented the primary data with secondary analysis of archived published materials and podcasts.

First, narratives on conformance rules and regulations (regulatory legitimacy) are significant sustainable consumption predictors of solar energy. However, the top-down regulatory legitimation narrative alone is insufficient to overcome poorly developed taken-for-granted (cognitive legitimacy) and morally correct consumption behavior (normative legitimacy), especially among the general population. Second, while consumption is primarily seen as a micro-level, residential and commercial customers phenomenon, the intersecting macro- (government) and meso-levels' (industry/market) narratives and discourses influence and direct micro-level consumption.

Future research agenda on legitimizing the sustainable consumption of solar energy needs to consider the dynamic interactions of institutional narratives and discourses through the lens of institutional theory and practice. Sustained, bold and provident government interventions and actions through market structure and policy issues play a crucial role in the consumption process, particularly in developing economies.