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Article
Publication date: 11 January 2011

Olga Ivanova and Sylvaine Castellano

The aim of this paper is two‐fold: to examine the challenges that organizations that have originated in transition environments face when moving from one layer of the environment…

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Abstract

Purpose

The aim of this paper is two‐fold: to examine the challenges that organizations that have originated in transition environments face when moving from one layer of the environment (local/national) to another one (international/global) and to enrich the understanding of the legitimacy concept by looking at two types of legitimacy (functional and relational) relevant to the organizations in transition environments trying to access the global marketplace.

Design/methodology/approach

Drawing on the legitimacy needs of organizations evolving in transition environments and trying to access a different environmental layer, we developed a signalling theory of legitimacy.

Findings

When trying to move from one layer of the environment to another one, organizations will use different types of legitimacy signals in order to address the liabilities they face.

Research limitations/implications

The research examines organizations facing both drastic environmental changes and evolving in a global industry. Future research can separately study the impact of each factor; and also investigate additional types of liabilities.

Practical implications

The study can help organizations from transition and emerging economies identify and employ signals that can enhance their organizational legitimacy, which may affect their performance. Additionally, public policy implications are developed in order to stimulate local businesses.

Originality/value

The multidimensionality of a signalling theory of legitimacy – functional and relational – increases our understanding of organizations facing liabilities, such as firms evolving in transition environments and trying to access the global marketplace.

Details

Baltic Journal of Management, vol. 6 no. 1
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 13 March 2017

Sylvaine Castellano and Olga Ivanova

The purpose of this paper is to explain how small- and medium-size enterprises (SMEs) in transition environments overcome the liability of origin to gain their legitimacy in a…

Abstract

Purpose

The purpose of this paper is to explain how small- and medium-size enterprises (SMEs) in transition environments overcome the liability of origin to gain their legitimacy in a global context.

Design/methodology/approach

Through semi-structured face-to-face interviews, this study investigates Bulgarian wine producers who evolve in transition environments and are looking for new means to restore their legitimacy both locally and globally.

Findings

The results show common patterns between Bulgarian wine producers to signal their legitimacy regarding the cognitive and normative pillars of legitimacy. However, in transition environments, signals of regulatory and industry legitimacy vary across firms to fit international standards and to create new local regulations.

Research limitations/implications

While this research focuses on the Central and Eastern European setting, future research examining transition environments can draw from the present findings in regards to legitimacy strategies adopted in times of drastic change.

Practical implications

This paper has practical implications which show that during transitions, SMEs in the wine industry go back to their roots by adopting norms and traditions that have persisted over time.

Originality/value

This paper contributes to legitimacy theory by proposing a process model of legitimacy – when faced with liabilities, SMEs can use signals of legitimacy to communicate their adherence to the stakeholders’ expectations.

Details

European Business Review, vol. 29 no. 2
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 20 March 2007

Brian Low, Wesley J. Johnston and Jennifer Wang

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…

3096

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Research limitations/implications

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

Practical implications

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.

Originality/value

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.

Details

Journal of Business & Industrial Marketing, vol. 22 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 9 August 2008

André Nijhof, Dai Forterre and Ronald Jeurissen

This paper aims to explore new forms of control that can address the legitimacy problems of globally‐integrated enterprises.

4984

Abstract

Purpose

This paper aims to explore new forms of control that can address the legitimacy problems of globally‐integrated enterprises.

Design/methodology/approach

In a conceptual analysis the characteristics of the globally‐integrated enterprise are used to put forward apt strategies of control. These proposals are examined and illustrated in a case study of the strategies in use in the athletic footwear industry.

Findings

This paper argues that command‐and‐control strategies will be ineffective for globally‐integrated enterprises. In order to behave like a global corporate citizen companies need to stress controls based on belief systems and interactive systems. Certain features of this shift in control are visible within the athletic footwear industry although many strategies in use are still based on thinking like a multinational.

Research limitations/implications

This paper is explorative in nature. More empirical research is needed to test the proposals this paper puts forward.

Practical implications

The results of this paper can be used as a framework to develop control strategies for companies working from a transnational perspective.

Originality/value

The functioning of globally‐integrated enterprises creates both tremendous economic possibilities as well as new problems of legitimacy. This paper is one of the first systematic attempts to provide a framework for dealing with these legitimacy problems and also serves as an illustration of this framework in the athletic footwear sector.

Details

Corporate Governance: The international journal of business in society, vol. 8 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 3 June 2019

Danny Chow and Caroline Aggestam Pontoppidan

The purpose of this paper is to analyse and understand the UN System’s adoption of IPSAS from a legitimacy perspective.

Abstract

Purpose

The purpose of this paper is to analyse and understand the UN System’s adoption of IPSAS from a legitimacy perspective.

Design/methodology/approach

A content analysis of publicly accessible documents from the UN System archives was conducted. The analysis was framed through the broader lens of legitimacy theory, drawing attention to the rationalities of decisions taken.

Findings

This study illustrated how the need for accounting reforms was rationalised throughout the UN System of organisations. Decision-making processes were reflective of political concerns and the accompanying need to continually demonstrate accountability. The discursive strategies observed associated the need to improve accountability with the adoption of globally recognised accounting systems. However, such logic assumed that existing accountability deficits were intrinsically linked to accounting failures, which overemphasises accounting’s role.

Social implications

The UN System’s decision to adopt IPSAS in 2006 has been followed by a substantial increase in the number of Member States following suit. However, governments and other organisations considering IPSAS adoption should be aware of the historical context in which the UN System’s decision was made.

Originality/value

This study addresses a lacuna in empirical studies providing an understanding of the role of accounting reforms within international organisations such as the UN System.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 31 no. 2
Type: Research Article
ISSN: 1096-3367

Keywords

Article
Publication date: 19 November 2008

Stephen K. Callaway

Two hot topics today in the popular press as well as academic literature are international entrepreneurship and corporate entrepreneurship. These topics challenge two traditional…

1071

Abstract

Two hot topics today in the popular press as well as academic literature are international entrepreneurship and corporate entrepreneurship. These topics challenge two traditional notions within those fields: the difficulty of established corporations to be entrepreneurial and the difficulty of entrepreneurs to go global. The current study introduces the concept global corporate ventures, which merges the concepts internal corporate ventures and “born globals.” This concept is developed and illustrated by two examples of global corporate ventures, ING Direct and HSBC Direct, two financial services e‐commerce ventures that have been launched on a global scale.

Details

Multinational Business Review, vol. 16 no. 3
Type: Research Article
ISSN: 1525-383X

Keywords

Book part
Publication date: 10 February 2015

Markus Helfen, Elke Schüßler and Sebastian Botzem

Corporate elites are increasingly held responsible for issues of sustainability including working conditions and workers’ rights in global production networks. We still know…

Abstract

Corporate elites are increasingly held responsible for issues of sustainability including working conditions and workers’ rights in global production networks. We still know relatively little about how they respond to concrete stakeholder initiatives aiming to restrict corporate voluntarism through transnational regulation. In this paper we report comparative findings on corporate legitimation strategies in response to requests by labor representatives to sign Global Framework Agreements (GFAs). These agreements are intended to hold multinational corporations (MNCs) accountable for the implementation of core labor standards across their supply chains. We propose to broaden management-focused analyses of corporate legitimation strategies by applying a field-oriented perspective that considers the embeddedness of management in a broader web of strategic activity and variable opportunity structures. Our findings suggest that legitimation strategies are developed dynamically along with the rules, positions, and understandings developing around specific regulatory issues in sequences of interactions between elites and challenging groups.

Article
Publication date: 1 January 2006

John Forster

To identify the organisations that provide global governance within the sports industry, to discuss their role, and to suggest that they have self‐governance problems due to both

14126

Abstract

Purpose

To identify the organisations that provide global governance within the sports industry, to discuss their role, and to suggest that they have self‐governance problems due to both their evolution and the massive commercialisation of sport of recent decades.

Design/methodology/approach

An empirical‐based argument is conducted. Standing at the apex of a hierarchy of national governing bodies and playing organisations, global sports organisations (GSOs) are defined and classified in terms of their governance functions, their commonalities and differences and their interconnections described and analysed. The GSOs for soccer, the Olympics and athletics are used as illustrative cases. Deficiencies in the small sports governance literature are identified. It is argued how the GSOs have maintained their authority as governance organisations despite being private organisations. Hirschman's “Voice, exit and loyalty” model is offered as a partial theoretical interpretation of their situation.

Findings

Although one of the GSOs' original major functions of formalising international sport is now complete, they have retained not only their sport governance monopolies and authority but also the original structures designed for amateur sport. This creates problems when the governance monopoly can be used as a revenue device.

Originality/value

Sport is an important part of global culture and an industry worth hundreds of billions of dollars where accusations of corruption are common but global governance is little examined. The GSOs, present‐day commercial roles and enormous revenues create unresolved governance problems and these are described.

Details

Corporate Governance: The international journal of business in society, vol. 6 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Book part
Publication date: 21 October 2019

Elizabeth Moore, Kristin Brandl and Luis Alfonso Dau

In the volatile, uncertain, complex, and ambiguous (VUCA) contemporary business environment intergovernmental organizations (IGOs) play a central role. Their objective is to align…

Abstract

In the volatile, uncertain, complex, and ambiguous (VUCA) contemporary business environment intergovernmental organizations (IGOs) play a central role. Their objective is to align member countries for collective global problem solving activities under the guidance of the organization. They aim at providing global stability and security through the creation of supranational institutions. While political sciences have studied IGOs from a global political perspective, little is known about the influence of these IGOs and their supranational institutions on country institutional environments and business environments. Thus, the purpose of this chapter is to understand how IGOs influence these national institutional environments, especially considering the countries’ development levels. By using regime and institutional theory we are able to conceptualize the relation of supranational and national institutions within the differently developed countries. We identify two interconnected factors that impact this analysis, the strength of the national institutional environment of member countries and their power in the IGO. Using these factors, we identify a clash and misalignment of national and supranational institutions in emerging countries, which is leading to enhanced VUCA business environments. We provide an exemplary case that discusses institutional schisms created by the International Monetary Fund’s (IMF) influence in Argentina. Moreover, the impact of IGOs is significant in least developed countries and has little to no impact in highly developed countries.

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Keywords

Book part
Publication date: 8 October 2018

Luis Alfonso Dau, Elizabeth M. Moore and Max Abrahms

This chapter examines the impact of national membership in international organizations on female entrepreneurship. Drawing on the institution-based view from global strategy and…

Abstract

This chapter examines the impact of national membership in international organizations on female entrepreneurship. Drawing on the institution-based view from global strategy and civil society theory from international relations, we show how international organizations can promote entrepreneurship opportunities for women with respect to the United Nations’ sustainable development goals (SDGs). This research has both practical and social implications. From a practical perspective, it provides important insights for policy makers and entrepreneurs. Policy makers can use the findings to understand how the international organizations that countries join affect entrepreneurship, particularly the United Nation’s SDGs Entrepreneurs can also use the findings to advocate mutually beneficial conditions for host environments, particularly those dedicated to female empowerment. A sample of 44 countries, 5 years of data, and 130 country-year observations finds robust support for our assertions.

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