Search results

1 – 10 of over 30000
Article
Publication date: 1 December 2022

Katariina Juusola and Reem Srouji

The purpose of this study was to use legitimacy theory to discuss three important aspects of sustainability accounting and reporting practices: the historical building of…

Abstract

Purpose

The purpose of this study was to use legitimacy theory to discuss three important aspects of sustainability accounting and reporting practices: the historical building of legitimacy for such practices, how organizations have adhered to them when building organizational legitimacy in a new legitimacy context (the Middle East and North Africa [MENA] region) and how sustainability professionals assess the legitimacy of them in this context.

Design/methodology/approach

The study applied an exploratory qualitative design and a paradigm-type approach to organizational discourse analysis. It used a document analysis and eight expert interviews as data sources.

Findings

The findings revealed that sustainability accounting and reporting face considerable challenges in the MENA region. Four discourses on organizational sustainability in the region were identified, namely, the normative/pragmatic, compliance, restrictive and performative discourses.

Practical implications

Awareness of the challenges and mechanics of sustainability accounting and reporting practices is important for managers, policymakers and consumers, who typically lack in-depth understanding of such practices and so would benefit from being better able to assess companies’ sustainability performance. The four identified discourses facilitate stakeholders’ understanding of sustainability practices in the MENA region.

Originality/value

The legitimacy of sustainability accounting and reporting has not previously been comprehensively investigated in non-Western contexts. This study discusses three important aspects of legitimacy: legitimacy of an object, legitimacy of a subject and legitimacy from an evaluator’s perspective. In doing so, it identifies the paradoxical nature of organizations’ attempts to comply with sustainability reporting practices.

Details

International Journal of Law and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 1 December 2022

Jens Gammelgaard and Rajesh Kumar

The purpose of this paper is to further the understanding of how the regulatory foci of the multinational enterprises (MNE) headquarters and the subsidiary lead to…

Abstract

Purpose

The purpose of this paper is to further the understanding of how the regulatory foci of the multinational enterprises (MNE) headquarters and the subsidiary lead to internal legitimacy crises. This paper discusses how pragmatic and moral legitimacy crises affect relational social capital.

Design/methodology/approach

The paper is conceptual.

Findings

This paper highlights the importance of internal legitimacy as well as the motivational orientations of headquarters and subsidiaries for the functioning of MNEs. Internal legitimacy management is crucial for building relational social capital. This study proposes that legitimacy crises are particularly likely to occur in cases of goal incongruence between headquarters and subsidiaries. This study postulates that organizations with a promotion-oriented institutional logic are concerned by the absence of pragmatic legitimacy processes. In contrast, given their aim of protecting the status quo, prevention-oriented institutional logic MNEs are concerned about the absence of moral legitimacy.

Originality/value

To the best of the authors’ knowledge, this paper is the first to explore the relationship between regulatory focus, internal legitimacy and relational social capital.

Details

Critical Perspectives on International Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

Open Access
Article
Publication date: 22 November 2022

Christian Lechner, Servane Delanoë-Gueguen and Gaël Gueguen

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

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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

Practical implications

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.

Originality/value

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

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 28 November 2022

Tianshu Xu, Dongyi Jiang and Dong Li

Study on the internal legalization process of strategic change for a large number of ultra-large enterprises in China.

Abstract

Purpose

Study on the internal legalization process of strategic change for a large number of ultra-large enterprises in China.

Design/methodology/approach

This paper takes formulation process of Suning Appliance Group’s 10-year strategy (2010–2020) as the research case, designs the research issues, propositions and analysis unit of the case study, and uses the data collection and analysis methods in the grounded theory to realize the theoretical development from data to viewpoint conceptualizing and to proposition categorizing.

Findings

There are four key concepts that affect the judgment of overall strategic legitimacy of super-large enterprises: Emerging-market opportunities and strategic operational positioning, legitimacy perspective mainly manifests as legitimacy judgment of strategic direction within organization. Positioning of core resources (including intangible resources) and their value identification methods or value evaluation criteria, the legitimacy perspective is mainly reflected in the organization's internal legitimacy judgment of functional planning, especially implementation path. The impact factors of the key performance of each SBU are positioned, and the legitimacy perspective is mainly reflected in the organization’s internal judgment on the legitimacy of strategic supporting measures, especially the resources needed for the implementation of the strategy and capacity development. The periodical strategic objectives and performance measurement indicators of each SBU are mainly reflected in the organization’s internal legitimacy judgment on strategic alignment and specific action plans for strategic operational units. The legitimacy of these four key concepts is strongly influenced by the rationality of these strategic concepts, which are closely related to their shaping patterns driven by right-brain and left-brain thinking modes.

Research limitations/implications

This case is a longitudinal study of the strategic decision-making process, not a longitudinal follow-up of the actual implementation of the strategy. In addition, given that the case enterprise was facing the emerging market at that time and focused on pushing firms to seize opportunities, not much research has been done on the impact of external legitimacy on the strategic formulation process, a variable that is increasingly being focused on today.

Practical implications

This model has guidance significance and practical demonstration role for a large number of enterprises that are implementing the “+Internet” strategic change under traditional offline operation.

Social implications

According to the summary of the connection between data and propositions in several rounds, this paper constructs a theoretical model of left and right brain thinking mode driving key concepts to achieve the internal legalization process of strategic changes.

Originality/value

In the analysis process, the legalization theory and the sense-making method are introduced into enterprises’ strategy making process. Based on this analysis framework, this paper analyzes in detail that the top decision-making level and the middle and high executive level form key strategic concepts to promote the internal legalization process of strategic decision-making driven by the right-brain intuitive thinking mode and the left-brain rational thinking mode, which greatly improves the quality of strategy formulation and the operability of strategy implementation.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 20 August 2019

Chong Wang and Peter Wilson Cardon

In recent years, scholars, business practitioners and consultants frequently talk about building the networked enterprise. The purpose of this paper is to examine the…

Abstract

Purpose

In recent years, scholars, business practitioners and consultants frequently talk about building the networked enterprise. The purpose of this paper is to examine the connections between networked enterprises, organizational legitimacy and organizational performance.

Design/methodology/approach

A survey was developed that measured the following aspects of a networked enterprise: employees who network and communicate extensively via internal digital platforms across their organizations; leaders who actively use internal digital platforms to communicate with employees; leaders who actively communicate with stakeholders via external digital platforms; and an innovation culture. The survey measured the following forms of legitimacy judgments: moral; instrumental; and relational. Altogether, 501 executives and managers were surveyed (207 executives, 147 senior managers and 147 managers) in mid-to-large sized (over 500 employees) companies.

Findings

The analyses showed strong statistical significance for nearly all relationships. Internal communication on digital platforms, networked employee communication and an innovation culture all contributed to moral, instrumental and relational legitimacy. Leadership communication on external digital platforms (social media) was not a significant contributor to moral or relational legitimacy but was a significant contributor to instrumental legitimacy. Higher organization legitimacy was correlated with higher profit growth.

Practical implications

Leaders and communicators should prioritize a networked enterprise in several ways. They should actively communicate with employees on internal digital platforms. To be absent on internal digital platforms is a significant missed opportunity by leaders to build organizational legitimacy. Further, leaders and communicators should actively promote networked communication among employees as much as possible. Finally, leaders and communicators should communicate, model and reward an innovation culture.

Originality/value

There are no known scholarly studies that accomplish the following: empirically examine a model of networked enterprises comprised of vertical and horizontal communication and an innovation culture; and make connections between leadership communication on digital platforms in networked enterprises with legitimacy judgments. The large sample of contemporary executives and managers bolsters the strength of the findings.

Article
Publication date: 8 September 2022

Leven J. Zheng, Yuanyuan Anna Wang, Hsuan-Yu Lin and Wei Liu

This paper explores how Industry 4.0 facilitates small and medium-sized enterprises (SMEs) in emerging markets to gain and maintain organizational legitimacy from the…

Abstract

Purpose

This paper explores how Industry 4.0 facilitates small and medium-sized enterprises (SMEs) in emerging markets to gain and maintain organizational legitimacy from the government and market and capture value from circular economy (CE) adoption in their businesses.

Design/methodology/approach

The authors conduct an in-depth, multistakeholder case study in an SME in China’s hazardous waste recycling and re-utilization industry and apply a qualitative analysis.

Findings

The findings show that Industry 4.0 could facilitate SMEs to gain organizational legitimacy through two mechanisms, namely conforming and transcending. Conforming results in baseline-level outcomes to obtain legitimacy while transcending leads to ecosystem value-cocreation, which goes beyond government expectations and reinforces SMEs' legitimacy.

Originality/value

The authors validated the enabling role of Industry 4.0 in CE adoption in SMEs and have generated legitimation processes and strategies that facilitate SMEs to capture value from CE adoption.

Details

Industrial Management & Data Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 10 October 2022

Jeffrey Gauthier, Jeffrey A. Kappen and Justin Zuopeng Zhang

This paper aims to consider the legitimacy challenges faced by hybrid organizations, examining the narrative strategies hybrids use in responding to these challenges and…

Abstract

Purpose

This paper aims to consider the legitimacy challenges faced by hybrid organizations, examining the narrative strategies hybrids use in responding to these challenges and offering a framework for managers to consider in their choice of narratives.

Design/methodology/approach

A narrative analysis of texts addressing the legitimacy of the business models used by four hybrid organizations is conducted.

Findings

The results of the analysis suggest that the nature of conflicting stakeholder demands – centered on goals or means – is an integral factor influencing hybrids’ choice of narrative strategies to emphasize distinctiveness or conformity.

Research limitations/implications

This paper adds to extant research examining the challenges hybrid organizations face and emphasizes that the choice of narrative strategies is an important factor hybrids must consider when managing legitimacy. Generalizability is a notable limitation of the case approach; the authors suggest areas for future research to address this limitation.

Practical implications

The research offers a practical framework for hybrids’ leaders, as they manage legitimacy, choosing to emphasize distinctiveness or conformity in the face of conflicts regarding goals or means.

Originality/value

By studying the legitimacy challenges faced by hybrid organizations, this study can form a more complete view of legitimation, encompassing different types of enterprises offering distinct value propositions.

Details

Society and Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5680

Keywords

Book part
Publication date: 16 October 2017

Wonhyuk Cho

This chapter analyzes how institutional pressures have allowed for continuities as well as brought about changes in modern police organizations in Korea. When facing a…

Abstract

This chapter analyzes how institutional pressures have allowed for continuities as well as brought about changes in modern police organizations in Korea. When facing a legitimacy crisis, the Korean law enforcement system has typically responded with organizational restructuring. Strong myth-building patterns compensate for the lack of moral legitimacy of the police, particularly under authoritarian-military regimes that suppress democratization movements in Korea. Even after seemingly radical organizational changes aimed at placing the police under democratic control, highly institutionalized core structures of the police remain in place. Performance reform after the economic crisis, which was proceeded from reformers’ shared belief in the market-driven solutions, diagnosed the Korean police as a big, inefficient, and self-serving bureaucracy, a diagnosis that eventually caused gradual deterioration in the taken-for-grantedness of policing activities. The internet and social media made the Korean police even more vulnerable to external challenges and a questioning of its legitimacy.

Details

The Experience of Democracy and Bureaucracy in South Korea
Type: Book
ISBN: 978-1-78714-471-2

Keywords

Book part
Publication date: 20 July 2016

Denis Frydrych, Adam J. Bock and Tony Kinder

This study examines how narratives and legitimacy formation affect crowdfunding capital assembly from distributed, heterogeneous investors.

Abstract

Purpose

This study examines how narratives and legitimacy formation affect crowdfunding capital assembly from distributed, heterogeneous investors.

Methodology/approach

The study explores a dataset of 80,181 projects from Kickstarter, a rewards-based crowdfunding platform, between 2009 and 2013. We explore the link between project-related variables, legitimacy formation and outcomes.

Findings

Entrepreneurs design narratives and create project legitimacy by exploiting crowdfunding platform-specific features. First, lower funding targets and shorter campaign durations confer positive project legitimacy. Second, entrepreneurs exploit reward-levels as narrative tools that encourage funders to engage with the project. Third, visual pitches transmit a broader sociocultural narrative, leveraging emotional rather than financial reasoning. We also note certain gender effects.

Research implications

Crowdfunding platforms allow entrepreneurs to pitch business ideas to a broad online audience. We show that project legitimacy, including both structural and narrative elements, is linked to crowdfunding outcomes. In particular, legitimacy is co-created through the generation of a persuasive narrative linking the entrepreneur and investor cohort.

Practical implications

Entrepreneurs use crowdfunding platforms to generate a coherent narrative around unfamiliar business models. Generic platform tools may be set and manipulated in online crowdfunding pitches to support project legitimacy. Ultimately, these are less important than establishing an affinity-based narrative that engages and exploits investor participation. Successful crowdfunding pitches co-author the project story with investors.

Originality/value

Crowdfunding has been traditionally understood as simply an online-mediated venture resource assembly tool. A narrative framework highlights the critical role of legitimacy formation in a disintermediated investment system.

Details

International Perspectives on Crowdfunding
Type: Book
ISBN: 978-1-78560-315-0

Keywords

Book part
Publication date: 25 November 2019

Alex Bitektine and Robert Nason

The authors explore how entrepreneurs with limited resources legitimated (or failed to legitimate) a new organizational category in different jurisdictions in Canada…

Abstract

The authors explore how entrepreneurs with limited resources legitimated (or failed to legitimate) a new organizational category in different jurisdictions in Canada despite severe resistance. The authors identify three meso-level domains of institutional action (public, administrative, and legal), where actors intervene to change their macro-institutional environment. The findings suggest that these domains mediate the relationship between micro-level agency and macro-level institutions. The authors describe how macro-level consensus about the category legitimacy emerges through a competition between judgments embedded in different discourses and how a particular discourse attains validity, forcing other actors to change their initial unfavorable legitimacy judgments and recognize the category’s legitimacy.

1 – 10 of over 30000