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1 – 10 of over 1000Jonathan Mukiza Kansheba, Clavis Nwehfor Fubah and Andreas Wald
New ventures often encounter legitimation challenges due to their liability of newness and foreignness. This particularly applies to the legitimacy beyond the local…
Abstract
Purpose
New ventures often encounter legitimation challenges due to their liability of newness and foreignness. This particularly applies to the legitimacy beyond the local entrepreneurial ecosystem (EE). The present study examines how new ventures’ local legitimacy influences legitimacy diffusion beyond the local EEs. It considers both the direct relationship between new venture local legitimacy and its diffusion beyond the EE and the moderating effects of legitimacy brokerage and network activities on this relationship.
Design/methodology/approach
A hierarchical multiple linear regression is employed to test a series of hypotheses using the data of 228 Finnish firms which was collected with an online survey.
Findings
Firms that garner active local legitimacy have a greater chance to diffuse that legitimacy beyond an existing ecosystem. Results also reveal that network activities and legitimacy brokerage enhance (positively moderate) the association between (passive and active) local legitimacy and its diffusion.
Originality/value
The present study contributes to and extends the literature at the intersection of new venture legitimacy and legitimacy diffusion beyond the existing EE – an aspect which has not been sufficiently studied.
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Hany Elbardan, Donald Nordberg and Vikash Kumar Sinha
This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.
Abstract
Purpose
This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.
Design/methodology/approach
The study is based on the comparative analysis of internal auditing and its transformation due to ERP implementations at two case firms operating in the food sector in Egypt – one a major Egyptian multinational corporation (MNC) and the other a major domestic company (DC).
Findings
Internal auditors (IAs) at MNC saw ERP implementation as an opportunity to reconstruct the legitimacy of internal auditing work by engaging and partnering with actors involved with the ERP change. In doing so, the IAs acquired system certifications and provided line functions and external auditors with data-driven business insights. The “practical coping mechanism” adopted by the IAs led to the acceptance (and legitimacy) of their work. In contrast, IAs at DC adopted a purposeful strategy of disengaging, blaming and rejecting since they were skeptical of the top management team's (TMT's) sincerity. The “disinterestedness” led to the loss of legitimacy in the eyes of the stakeholders.
Originality/value
The article offers two contributions. First, it extends the literature by highlighting a spectrum of behavior displayed by IAs (coping with impending issues vs strategic purposefulness) during ERP-driven technological change. Second, the article contributes to the literature on legitimacy by highlighting four intertwined micro-processes – participating, socializing, learning and role-forging – that contribute to reconstructing the legitimacy of internal auditing.
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Simon Lundh, Karin Seger, Magnus Frostenson and Sven Helin
The purpose of this study is to identify the norms that underlie and condition the decisions made by preparers of financial reports.
Abstract
Purpose
The purpose of this study is to identify the norms that underlie and condition the decisions made by preparers of financial reports.
Design/methodology/approach
This interview-based study illustrates how financial report preparers engage in behaviors linked to the perception of recognition and measurement of internally generated intangible assets by important stakeholders. All of the companies included in the study adhere to International Financial Reporting Standards when creating their consolidated financial statements. The participants selected for the study are involved in accounting decisions related to research and development in accordance with International Accounting Standard (IAS) 38.
Findings
The authors identify the normative assumptions underlying the recognition and measurement of internally generated intangibles, which are based on concerns of consistency, credibility and reasonableness. The authors find that the normative basis for legitimacy in financial accounting is primarily related to cognitive legitimacy and is not of a moral or pragmatic nature.
Originality/value
The study reveals that recognition and measurement of internally generated intangibles in financial accounting relate to legitimacy. The authors identify specific norms that form the basis of this legitimacy, namely, consistency, credibility and reasonableness. These identified norms serve as constraints, mitigating the risk of judgment misuse within the IAS 38 framework for earnings management.
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Police legitimacy presents a social value of the institution based on citizens' normative, moral and ethical feelings that they should voluntarily comply with and support the…
Abstract
Purpose
Police legitimacy presents a social value of the institution based on citizens' normative, moral and ethical feelings that they should voluntarily comply with and support the authority of the police. The present study focuses on residents' perceptions of police legitimacy in different settings in Slovenia.
Design/methodology/approach
Drawing on data from a survey of 1,022 citizens in Slovenia, this study examined the correlates of police legitimacy and differences in citizen perceptions of police legitimacy in urban, suburban and rural settings.
Findings
Multivariate statistical analyses showed that feelings of obligation to obey, trust in police, procedural justice, police effectiveness, relations with police officers and gender influence perceptions of police legitimacy. Significant differences between residents' perceptions of police legitimacy, obligation to obey, trust in police, procedural justice, police effectiveness and legal cynicism in urban, suburban and rural settings were also observed. In general, residents of rural areas were found to have more positive attitudes towards the police than those in urban and suburban settings.
Practical implications
The article is useful for police leaders and practitioners planning policies and training of police officers for democratic policing.
Social implications
Police legitimacy reflects the legitimacy of governance, as the police are the most visible representatives of the state authority. Therefore, police legitimacy is crucial for policing in urban, suburban and rural settings.
Originality/value
The study presents the first test of police legitimacy in a non-Western cultural environment based on a national sample of citizens, which enables the generalisation of concepts of legitimacy, and its correlates in a different cultural setting. The study also presents the first attempt to test and compare the effect of the settings (i.e. rural, suburban and urban) on variables influencing residents' perceptions of police legitimacy.
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Daniel Druckman, Siniša Vuković and Nicolas Verbeek
This study aims to explore the role of rebel group legitimacy and ideology in durable peace (DP) following peace agreements to end civil wars. It builds on earlier research…
Abstract
Purpose
This study aims to explore the role of rebel group legitimacy and ideology in durable peace (DP) following peace agreements to end civil wars. It builds on earlier research showing that justice and civil society involvement are critical in achieving DP. This study adds the impacts of rebel group activities and support on DP. Activities include service delivery and mobilization. Support is gauged with outcomes of presidential and parliamentary elections held following peace agreements.
Design/methodology/approach
Five data sets were used to measure the key variables: DP, inclusive commissions (IC), legitimacy symmetry (electoral outcomes), service delivery and ideological mobilization. A measure of rebel group integration in the political system was also constructed. Impacts of the integration, legitimacy and ideology variables were assessed with a hierarchical regression model (HRM). This study begins with a base model drawn from earlier research showing the key predictors were procedural justice (PJ) and IC. The authors ask about the extent to which the rebel group variables contribute additional variance to the prediction of DP.
Findings
The main contributors to the prediction of DP were PJ, IC and integration in the political system. None of the legitimacy or mobilization variables added significant variance to the prediction. Only one of the mobilization variables, forced recruitment, was significant. The decision to integrate into the political system following the agreement did not mediate the relationship between PJ in the negotiation process and DP. Results of a factor analysis showed that DP, PJ, IC and integration formed a cluster with strong loadings on the first factor.
Research limitations/implications
The negative results for the legitimacy and mobilization variables may not be the last word on rebel group influences. Lack of support for the key hypotheses spurs attempts to discover other sources that contribute to the survival of rebel group actors in the political system and, in turn, to DP.
Practical implications
The issues raised by this study contribute to debates about ways to attain peaceful relations among competing groups following a civil war. It appears that attention to factors inside and around the negotiation process (PJ, ICs and conversion) may be more important than rebel group activities outside of these processes. The results call attention, in particular, to the important role played by political integration. From a policy perspective, it would be useful to develop levers for encouraging rebel groups to emerge as political actors in the post-agreement environment.
Originality/value
Developing measures of the symmetry of rebel group legitimacy and integration in the context of a comparative case study are the primary original contributions of this study. Furthermore, the mode of analysis (HRM) is novel in this literature. This approach builds on and extends the earlier research on factors influencing DP.
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The purpose of this study is to propose a model of knowledge legitimation in organizational learning focusing on the relationship between power politics and legitimacy.
Abstract
Purpose
The purpose of this study is to propose a model of knowledge legitimation in organizational learning focusing on the relationship between power politics and legitimacy.
Design/methodology/approach
This study adopts the approach of a conceptual discussion.
Findings
This study developed an organizational learning model that explains how actors exercise their power and how knowledge is legitimated through politics. The author identified various factors that shape the politics; these factors trigger, enhance, facilitate and inhibit power exercise. This study also identified which type of power (influence, force, domination and discipline) leads to which type of legitimacy (pragmatic, moral and cognitive). Furthermore, this study found that power politics and organizational learning are interrelated; actors’ powers bestow legitimacy on knowledge, and knowledge enhances the power of related actors.
Originality/value
This study identified the set of factors that shape actors’ power exercise in organizational learning as well as their associated mechanism and illustrated how they lead to knowledge legitimation. The author also revealed the relationships between actors’ power and legitimacy of knowledge. Finally, this study elaborated on the findings of prior studies concerning politics of organizational learning.
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Joaquin Cestino, Joseph Macey and Brian McCauley
This paper studies early stages of actor mobilization for institutional change within Swedish esports.
Abstract
Purpose
This paper studies early stages of actor mobilization for institutional change within Swedish esports.
Design/methodology/approach
The authors employ interpretative phenomenological analysis.
Findings
The authors’ findings explain how actors become motivated to act in critical reflections linked to conflicting legitimacy judgments and emotionally charged personal struggles. Moreover, the findings show how, as actors get activated in collective action, they identify efficacy lines around valid domains and experience emotionally charged collective endeavors. Furthermore, the findings explain how particularities in early experiences project legitimacy aspirations that orient collective action toward validity ends and particular values and ideals shaping actors' grassroots movements.
Originality/value
This study adds to legitimacy and institutional change theory through individual actors' perspectives, providing key insights into how they are motivated, activated, and oriented. This study is the first to investigate grassroots activists' personal stories in esports.
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The study examines the social and environmental responsibility indicators disclosed by three International Council on Mining and Metals (ICMM) corporate mining members in their…
Abstract
Purpose
The study examines the social and environmental responsibility indicators disclosed by three International Council on Mining and Metals (ICMM) corporate mining members in their social and environmental reporting (SER) from 2006 to 2014. To achieve this aim, the author limits the data two years before (i.e. from 2006 to 2007) and six years after (i.e. from 2009 to 2014) the implementation of the Sustainable Development Framework in the mining sector in 2008.
Design/methodology/approach
Using the techniques of content analysis and interpretive textual analysis, this study examines 27 social and environmental responsibility reports published between 2006 and 2014 by three ICMM corporate mining members. The study develops a disclosure index based on the earlier work of Hackston and Milne (1996), together with other disclosure items suggested in the extant literature and considered appropriate for this work. The disclosure index for this study comprised six disclosure categories (“employee”, “environment”, “community involvement”, “energy”, “governance” and “general”). In each of the six disclosure categories, only 10 disclosure items were chosen and that results in 60 disclosure items.
Findings
A total of 830 out of a maximum of 1,620 social and environmental responsibility indicators, representing 51% (168 employees, 151 environmental, 145 community involvement, 128 energy, 127 governance and 111 general) were identified and examined in company SER. The study showed that the sample companies relied on multiple strategies for managing pragmatic legitimacy and moral legitimacy via disclosures. Such practices raise questions regarding company-specific disclosure policies and their possible links to the quality/quantity of their disclosures. The findings suggest that managers of mining companies may opt for “cherry-picking” and/or capitalise on events for reporting purposes as well as refocus on company-specific issues of priority in their disclosures. While such practices may appear appropriate and/or timely to meet stakeholders’ needs and interests, they may work against the development of comprehensive reports due to the multiple strategies adopted to manage pragmatic and moral legitimacy.
Research limitations/implications
A limitation of this research is that the author relied on self-reported corporate disclosures, as opposed to verifying the activities associated with the claims by the sample mining companies.
Practical implications
The findings from this research will help future social and environmental accounting researchers to operationalise Suchman’s typology of legitimacy in other contexts.
Social implications
With growing large-scale mining activity, potential social and environmental footprints are obviously far from being socially acceptable. Powerful and legitimacy-conferring stakeholders are likely to disapprove such mining activity and reconsider their support, which may threaten the survival of the mining company and also create a legitimacy threat for the whole mining industry.
Originality/value
This study innovates by focusing on Suchman’s (1995) typology of legitimacy framework to interpret SER in an industry characterised by potential social and environmental footprints – the mining industry.
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M. Karim Sorour, Philip J. Shrives, Ahmed Ayman El-Sakhawy and Teerooven Soobaroyen
This paper seeks to investigate to what extent (and why) CSR reporting in developing countries reflect instrumental and/or “political CSR” motivations and the types of…
Abstract
Purpose
This paper seeks to investigate to what extent (and why) CSR reporting in developing countries reflect instrumental and/or “political CSR” motivations and the types of organisational legitimacy sought in these circumstances.
Design/methodology/approach
We adopt a theoretical framework based on neo-institutional theory, “political CSR” framework and types of organisational legitimacy. This interpretive research is set in the Egyptian context post-2011 revolution. We first carry out a content analysis of web disclosures for 40 banks in 2013 and 2016 to ascertain the nature of CSR activities and any changes over time. Second, we draw on 21 interviews to tease out the implications of the change in societal expectations due to the revolution and to deepen our understanding of the organisational motivations underlying CSR reporting.
Findings
Following the 2011 revolution, the banks’ CSR reporting practices have gradually shifted from a largely instrumental “business-case” perspective towards a more substantive recognition of a wider set of societal challenges consistent with a political CSR perspective. Overall, the maintaining/gaining of legitimacy is gradually bound to the communication of accounts about the multi-faceted socially valued consequences or structures performed by banks. Our interview data shows that participants reflected on the legitimation challenges brought by the revolution and the limits of transactional strategies involving traditional constituents, with a preference for pursuing consequential and structural forms of moral legitimacy.
Research limitations/implications
This study demonstrates a constructive shift by businesses towards engaging with the new social rules in response to sociopolitical changes and the need to achieve moral legitimacy. Hence, policymakers and stakeholders could consider engaging with different economic sectors to foster more transparent, accountable, and impactful CSR practices.
Originality/value
We highlight the implications of Scherer and Palazzo’s political CSR approach for accountability and CSR reporting. CSR reporting in some developing countries has typically been seen as peripheral or a symbolic exercise primarily concerned with placating stakeholders and/or promoting shareholders’ interests. We suggest that researchers need to be instead attuned to the possibility of a blend of instrumental and normative motivations.
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Sinikka Lepistö, Justyna Dobroszek, Lauri Lepistö and Ewelina Zarzycka
This paper aims to explore controls within an inter-organisational relationship involving outsourced management accounting services from the contractor’s perspective.
Abstract
Purpose
This paper aims to explore controls within an inter-organisational relationship involving outsourced management accounting services from the contractor’s perspective.
Design/methodology/approach
Qualitative data from within the relationship are analysed in a legitimacy-theory framework, illustrating how controls within the relationship are intended to build the contractor’s legitimacy and what kinds of implications the controls have in relation to conflicts between interests inherent in the relationship.
Findings
The legitimacy perspective clarifies that while controls are aimed at ensuring efficiency for the client, they may also provide symbolic displays of the appropriateness of the contractor’s actions both at an inter-organisational level for the client and at an individual level for the contractor’s employees. While the contractor intends to build legitimacy with the client by demonstrating utility in the form of efficiency, the process also gives the client influence and allows the disposition in terms of shared values to be demonstrated. However, this process has some negative consequences for the contractor’s employees as it is insufficient for serving the boundary-spanning employees’ interests connected with the nature of their work. Hence, the same controls need to yield benefits and fair outcomes for employees. The controls simultaneously foster interconnections that contribute to permanence and formalise the outsourcing of complex services, thereby rendering such processes comprehensible and transferable to other settings, which can be seen to serve the contractor’s continuity interests.
Originality/value
The paper contributes to academic research by illustrating how controls within inter-organisational relationships not only steer boundary-spanners’ work to conform to a client’s needs but may also help to build legitimacy via symbolic properties in the presence of conflicting interests at both an inter-organisational and individual level. It specifically highlights the important role of boundary-spanners lower in the organisational structure, who both affect and are influenced by the intentions to build legitimacy with the client.
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