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Purpose: This chapter aims to illuminate the cultural perceptions of illicit alcohol and to examine the role of cognitive polyphasia in changing the perceptions and legitimacy of market practices.

Methodology/Approach: An ethnographic study of the Kenyan illicit alcohol market, which combined digital news media data analysis, with observation and interview data.

Findings: Cognitive polyphasia serves to delegitimize illicit alcohol by portraying it as incongruent with existing cultural beliefs, values, and assumptions. Illicit alcohol is portrayed as a contaminated product, a cursed business, a practice that causes cultural breech, and a scheme of witchcraft/sorcery used to enslave consumers. Findings also show that cognitive polyphasia involves drawing on traditional knowledge to explain misfortune and difficult social phenomena such as addiction. The delegitimation of illicit alcohol induces behavior and perception change. Consumers play an important role in this change process.

Research Implications: This research proposes the incorporation of cultural language into alcohol policy and education.

Social Implications: By illuminating social representations in the cultural-cognitive arena, a theory for applying these factors to change markets/behavior is proposed.

Originality/Value of Paper: The chapter highlights the delegitimation of market practices, unlike previous research that focuses on legitimation processes. This chapter also demonstrates how cognitive polyphasia, a scarcely researched concept in consumer research, can induce behavior change. This chapter also contributes to the literature on market/behavior change by revealing potential cultural-cognitive barriers to change.

We explore and explain how academic organizations attempt to establish legitimacy in a transition to a postconflict context, and we examine the ethical challenges that emerge from insightful approaches to formal education in such contexts.

We use legitimacy theory to present a case study of a business school in Medellin, Colombia (herein referred to by the pseudonym BS-MED) in the empirical setting of the end of the most prolonged armed conflict in the world.

We identify the mechanisms implemented by BS-MED to comply with the Colombian government's peace process and rhetoric of business profitability and the faculty members' initiatives in response to social and academic tensions.

This study identifies the sources of the tensions and discrepancies between the regulatory and pragmatic versus moral and cultural-cognitive criteria of legitimacy in transitions to a postconflict context. This examination advances our understanding of the challenges that organizations face regarding changes to legitimacy over time. The extreme setting of our case positions academics as key players who lead the search for legitimacy. This study challenges the understandings of legitimacy in the literature on organizations, which rarely consider broader sociopolitical transitions to a peace context.

Before addressing these three issues, I provide some background on the key theoretical approaches to legitimacy employed in this volume: two legitimacy theories in social psychology and institutional theory in organizational analysis. Virtually every contributor draws upon at least one of these theories; several authors draw upon two of these theories, offering a way to bridge them and/or apply them to a substantive concern.

The purpose of this paper is to theorize the institutional pillars of management accounting function.

The paper adopts a comparative case study approach.

Institutional pillars of management accounting are explored on the basis of two longitudinal case studies. Competitive/economic forces and three analytical elements of institutional theory are composing institutions: regulative, normative and cultural‐cognitive pillars. Each element is important, and all of them may work in combination, but they operate through distinctive mechanisms and processes. This paper illustrates how they provide the basis for compliance, order and the legitimacy of not the whole organization, nor of the management accounting systems but of the management accounting function. This “organizational legitimacy” of management accounting function may provide one potential additional explanation for the change and stability of management accounting in organizations.

This paper creates an institutional interpretation of accounting change or stability at the level of an accounting function. It illustrates how the pressure for change or stability in management accounting is collectively constituted in organisations, how it is given meaning and how individuals are making sense of things, i.e. how accounting is institutionally embedded.

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.

Based on the literature on organizational legitimacy, organizations must adhere to the value-driven standards inherent in the cultures in which they operate. Organizations’ Web sites help increase the public’s awareness and understanding of their values and culture. The purpose of this paper is to examine the strategic legitimation efforts of Chinese organizations through their Web content.

To identify the core values and cultures communicated by Chinese organizations, a systematic content analysis was conducted on the Web contents of Chinese Fortune 500 companies (n=500) as listed by the 2010 Chinese Fortune 500 online magazine.

The major findings included the following: over half (i.e. 62.2 percent) of the Chinese Fortune 500 companies communicated their organizational values on their Web sites; this study identified some key value clusters (e.g. such as trustworthiness, propriety, benevolence, or self-regulation) for Chinese organizations’ legitimacy; Confucianism exerted a strong influence on these Chinese organizations’ values; and Chinese organizations relied on cooperation and coordination to achieve harmonic relationships with others.

The current study only focussed on the most profitable and successful Chinese organizations. Future studies could extend this analysis to examine differences between the values communicated by privately owned and non-profit organizations in China. Since the current study adopted a strategic organizational legitimacy framework, future research should use an institutional legitimacy framework by actively assessing the relational networks of Chinese consumers to identify the societal standards that make up organizational legitimacy from the consumer perspective. Focus groups or in-depth interviews with various consumers and employees would help identify these expectations and their corresponding values and provide an in-depth examination of how these standards are created.

This study suggested two key implications. First, Chinese organizations believe that the values (e.g. harmony, truth-seeking, or unity) held by employees have formed the foundation of organizational behavior or image. Second, individual and cultural values have guiding roles in the standards that constituents establish for organizations. Global communication practitioners must counsel managers conducting business with Chinese organizations to recognize the cultural influence on how Chinese companies conduct business.

This study represents a pioneering study in a series of studies focussed on conceptualizing organizational legitimacy in Chinese cultures.

The purpose of this study is to examine the relationship between mandatory environmental performance disclosure and subsequent environmental regulatory performance.

Using legitimacy theory as the interpretive lens, regulatory non‐compliance disclosures threaten organizational legitimacy and non‐compliant firms are expected to respond to these threats. The potential effectiveness of different legitimation strategies for reducing these threats is evaluated.

Regression analysis shows a negative correlation between the mandatory disclosure of environmental legal sanctions and subsequent regulatory violations using firms in the US oil refining industry. These results are interpreted as demonstrating that subsequent regulatory compliance is a tactic employed by managers to minimize the delegitimizing effect of organizational impropriety revealed by mandatory accounting disclosures.

Implications for practice include linking financial reporting to environmental performance. This link gains greater importance as concern about the environmental effects of business operations becomes more acute within the investor, regulatory, and public interest arenas.

The paper makes original contributions to research on mandatory environmental disclosures that are embedded in US financial reporting. In addition, a conception of legitimacy theory that is broader than previously relied upon in accounting research literature is reviewed. The study examines a single industry within a single country. Further research may determine whether similar relationships are observed in other industries, and whether equivalent relationships can be examined in international settings. In addition, the possibilities and limits of regulatory compliance as a measure of environmental performance, and of environmental accounting as a policy tool in the governance of the commons are discussed.

This paper explores the communication of legitimacy in the annual reports of non-governmental organizations (NGOs), focusing specifically on the function of images. The visual mode of discourse and meaning construction has to date only scarcely been explored in legitimacy research, especially in the NGO context.

Distinguishing between normative, regulatory, cognitive and outcome legitimacy, the paper inquires into the kinds of legitimacy that NGOs communicate to their constituents and the claims that predominate. Turning to research on impression management, the paper explores whether and how organizations use images as symbolic mechanisms of legitimacy. Finally, the paper considers the socio-cultural implications of these legitimation strategies for beneficiary groups, donor communities and the organizations themselves.

A qualitative content analysis of images in the reports of the eight influential members of the US-based Global Emergency Response Coalition confirms the widespread presence of legitimacy claims in NGO visual communications, with normative (especially need) and output (especially implementation) categories predominating. However, these practices are potentially contradictory; measures to increase legitimacy to and of donors result in forms of beneficiary exclusion and reduction. Strategies of impression management, namely self-promotion, ingratiation and exemplification, appear to shape these NGO representative logics.

The results of this study extend prior research into legitimacy, legitimation and impression management in and beyond the non-governmental sector by differentiating among categories of legitimacy and incorporating images as the object of analysis. In this capacity, they also support and augment the emerging literature on imagery use in NGO annual reports.

Scholars have examined the importance of culture in entrepreneurship since at least the 1970s. Lounsbury and Glynn (2001) gave these efforts new impetus by explicitly theorizing entrepreneurship as a cultural process. In the intervening 20 years, work in this area has proliferated. To date, however, this work has emphasized the positive aspects of cultural entrepreneurship almost exclusively. Not all episodes of cultural entrepreneurship are positive, though, and not all entrepreneurial stories have a happy ending. Acknowledging this, we develop a framework for investigating the dark sides of cultural entrepreneurship. We posit four pathways through which cultural entrepreneurship might lead to negative outcomes. Along one dimension, we distinguish false promises and harmful practices. The second dimension differentiates between negative outcomes and negative spillovers. We illustrate our arguments with real-world examples, and discuss how our framework signals new research opportunities related to corruption and wrongdoing, as well as the potential for cultural entrepreneurship research to focus on authenticity as well as legitimacy.

Dominant quality standards are present in all industries. Implicit in their use is the assumption that once adopted, there is little or no reason to replace them. However, there is evidence that, under certain circumstances, such standards do get replaced. The reasons for this action are not well-understood, either as they pertain to the displacement decision or to the selection and adoption of the alternative standard. The purpose of this study is to identify and explore these two issues (displacement and replacement) by drawing on data from the American healthcare system. This study is viewed through the theoretical lens of legitimacy theory. In addition, the process is viewed from a temporal perspective. The resulting findings are used to better understand how this displacement process takes place and to identify directions for interesting and meaningful future research.

This is an explanatory study that draws on data gathered from quality managers in 89 hospitals that had adopted a new healthcare quality standard (of these, some fifty percent had displaced the dominant quality standard – the Joint Commission – with a different standard – DNV Healthcare.

The combined literature review and case study data provide insights into the displacement process. This is a process that evolves over time. Initially, the process is driven by the need to meet customer demands. However, over time, as the organizations try to integrate the guidelines contained within the standards into the organization, gaps in the quality standard emerge. It is these gaps that motivate the need to displace standards. The legitimacy perspective is highly effective at explaining this displacement process. In addition, the study uncovers some critical issues, namely the important role played by the individual auditors in the certification process and the importance of fit between the standard and the context in which it is deployed.

The data for the propositions in this case study were derived from interviews and survey data from 89 healthcare organizations. It would be interesting to examine similar relationships with other quality standards and industries.

Our findings provide new insights related to motivations to decouple from a dominant quality standard. Results provide a cautionary tale for standards that hold a dominant market share such that perceived legitimacy of such standards is not as stable as originally thought.

This study illuminates the fragile nature of the stability of dominant standards and emphasizes the linkages between legitimacy concerns and divestiture of such standards.