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Owing to dual constraints including liability of foreignness and liability of origin when emerging multinationals internationalize, they inevitably face the challenge of overseas legitimation. However, few studies have explored how latecomers cross the threshold of legitimacy in the dynamic context of transnational operation. The purpose of this paper is to unravel the evolution process, triggers and specific strategies of overseas legitimacy threshold crossing of emerging multinationals.

Through the longitudinal case study of Haier Group and Goldwind Sci & Tech Co., Ltd, this study investigates the periodical characteristics of overseas legitimacy threshold crossings and the co-evolution among critical factors influencing the legitimation process in the host country.

First, it summarizes that the legitimacy threshold in the host country experiences a sequential process from pragmatic legitimacy to normative legitimacy, and finally cognitive legitimacy. It is an inevitable choice for emerging multinational enterprises to realize and sustain legitimation from passive adaptation to active creation. Second, it reveals that the triggers for crossing the threshold of overseas legitimacy include periodically dynamic factors – international network linkage and resource system reconfiguration, as well as cross-stage spiral interaction effects. Third, it determines the specific strategies for crossing the threshold of overseas legitimacy, namely, replacement, upgrading and reconstruction of organizational identity, and reveals the important role of insisting on the country-of-origin Facebook in promoting the legitimation.

This study enriches the legitimacy threshold crossing literature from an evolutional perspective, especially the traditional static legitimacy research. This study also reveals the key impacting factors – international network linkage and resource system reconfiguration – and their evolution process interacted with the legitimation process.

The emerging multinationals should break the stereotypes from developed markets in that only creating new cognitive patterns through active legitimate strategies can they truly cross the legitimacy threshold in the host country. The emerging multinationals also need to retain their own home country legitimacy traits – Facebook and balance the relation between the image of the home country and the image of host country.

This paper investigates the process of overseas legitimacy threshold crossing for emerging multinationals in a dynamic context of transnational operation, particularly with respect to the evolutionary role played by international network linkage and resource system reconfiguration.

Digital servitization research has focused on how manufacturing firms use digital technologies to change business models and offer smart services; less attention has been devoted to the degree to which external actors in the existing ecosystem accept these smart services. Therefore, the authors pose the following research question: How does a manufacturing firm introduce and gain acceptance of new smart services within an established ecosystem?

Building on servitization, ecosystem and legitimacy theories, this paper addresses the research question through an in-depth case study of a world-leading original equipment manufacturer that is currently developing and introducing new smart services in its existing ecosystem.

The findings suggest that external actors emphasize different types of legitimacy in deciding whether to accept a new smart service. The findings also show that the type of legitimacy required to gain acceptance changes throughout the development of the smart service, from the definition of the value proposition to the design and delivery of the service.

This study can assist smart service providers in identifying which type of legitimacy is important for each ecosystem actor and strengthening these types of legitimacy to gain acceptance from the ecosystem.

This study develops a framework to help describe the thresholds for acceptance of a smart service through the development phases, as well as to indicate the types of legitimacy that smart service providers must relate to when seeking to gain acceptance for their new offering.

The purpose of this paper is to explore the proposition that organizational policies and actions gain more legitimacy when they proactively improve (rather than reactively defend) their corporate social responsibility (CSR) standing by meeting challenges discursively mounted by competitors, watchdog activists, and governmental officials.

The paper reviews literature, including social capital, to consider CSR as both a reactionary and proactionary construct that guides how organizations defend and publicize their corporate social performance (CSP). The paper examines four premises relevant to the discursive (contentious and collaborative) approach to formulating and implementing CSR norms. The case of fracking (hydraulic fracturing) in the USA provides text for exploring these premises, especially the advantages of a proactionary strategy.

This paper concludes that CSR expectations of industry performance rest on threshold legitimacy standards that not only withstand but also are improved by discursive challenge.

The case study offers limited support for the findings; more cases need to be examined to determine whether the findings are robust.

This paper, based on theory and research, proposes a strategic management and communication approach to social responsibility based on proaction.

CSR communication is most constructive to a fully functioning social that generates social capital by proactive engagement rather than reactive challenges of stakeholder CSR expectations.

Discussion of CSR and CSP as employing profit for the good of society, based on discussions of legitimacy and social capital, strengthens CSR as strategic management and communication options. Such research clarifies how evaluative expectations of CSR are a legitimacy threshold as well as basis for reputational enhancement.

The chapter first draws concepts underlying legitimacy theory (Suchman, 1995) to provide a basis to understand alternative approaches to the development of ethical cultures in global organization. The chapter then illustrates the institutionalization of Codes of Ethics through a “management” approach drawing from Simon’s Levers of Control as a framework to contextualize experiences of a large global conglomerate. The chapter adopts the case approach, applying the case of the Tata Group to highlight the integration of external institutions into the institutionalization process. The management of business ethics (MBE) can provide a basis to institutionalize ethics in global firms to create an internal culture consistent with ethical goals of the corporations that may also be different from the external environment. The MBE includes the application of managerial techniques and information technology to institutionalize ethics in organizational culture. Management Accountants can have a significant role in supporting this endeavor, given their expertise in measurement and control. The code is only one aspect through which firms develop their identity. Information on the case was unevenly distributed. For example, there was voluminous information on the code and its implementation. Therefore, some subjectivity was necessary in selecting relevant items. The chapter, to my knowledge, provides unique insights into the theoretical and practical aspects of institutionalizing ethics in corporate cultures using Codes of Ethics.

Central to Martha Nussbaum's development of the capability approach into a theory of social and global justice is her addition of the notion of a capability threshold below which no dignified human life can be lived. This capability threshold identifies a standard for distributive justice that any decent political order must secure for all citizens. It is this threshold that is the intended focus of this paper.

Examining her most recent statement of the capability approach, Nussbaum's arguments that the threshold should be locally set by each nation in accordance with their history and traditions, and that all nations currently fail to satisfy the threshold condition, are assessed.

This paper shows that if Nussbaum's arguments are accepted, then the central function of a threshold as a tool of discrimination is undermined. If all nations fail to meet their locally set threshold, then there is no clear basis for the global redistribution that Nussbaum regards as necessary. Indeed, what basis there is could even justify counter‐intuitive redistribution from poorer to richer nations.

This paper concludes that if the capability approach is to be developed into a theory of social justice, then, rather than being set locally at different levels, the capability threshold may need to be a genuinely global one. Only then can the threshold discriminate between unjust political orders and those that are at least minimally just.

Foreign markets possess different characteristics to domestic ones; this means that dynamic marketing capabilities (DMCs) should be adjusted. This paper aims to understand how these DMCs enable firms to achieve greater legitimacy in international markets.

This research uses a qualitative approach based on in-depth interviews in collaboration with an association of exporting firms.

Findings suggest five areas of DMCs to improve organizational legitimacy overseas: flexibility, relationship management, local market sensitivity, anticipation and exemplariness. Those capabilities should be combined and will play a different role depending on the implementation phase of the external company. Resource allocation and capability development should follow an integrative approach emphasizing proximity, adaptability, alliances, engagement and credibility to reach differentiation in foreign markets.

The originality is mainly focused on the cohabitation and strong synergies between DMCs and legitimacy. This aspect is particularly relevant because legitimized companies have higher levels of survival, which is fundamental in the international venture.

The literature of organizational change hints that adaptability and inertia not only counterbalance but also reinforce each other, and the inertia-adaptability balance over time is nonlinear. The author aims to address this view more clearly by presenting a multi-stage conceptual model that delineates how adaptability and inertia take turns to override each other. In addition, data collected from over 400 nonprofit organizations within the USA were used to test this model.

This study uses polynomial regression to examine the multi-stage conceptual model. More precisely, it tests how organizational age influences an organization's innovativeness, managerial risk aversion, and red tape.

The findings support the multi-stage conceptual model. The results imply that organizational ecology and rational adaptation are mutually compatible perspectives in explaining organizational age dynamics.

This study introduces a multi-stage model that more clearly examines how adaptability and inertia counterbalance and reinforce over time. More importantly, the author empirically examines the nonlinear organizational age dynamics using quantitative data.

The purpose of this paper is to explore the process of legitimation of international new ventures (INVs) from an emerging economy and the effect such ventures have on the process of creation and legitimation of a new industry in that economy.

It is a longitudinal ethnographic case study. Following an inductive theory building approach, data were collected over an 11-year period via in-depth interviews, participant observations and unobtrusive data.

Data reveal three different contexts in which legitimation takes place: legitimation of the new industry and of the new venture domestically and internationally. A new venture drives the process of industry legitimation by achieving legitimacy threshold first nationally at meso and micro levels as well as internationally. The challenge therefore for such a venture is to establish legitimacy in the absence of any precedents at the organization, industry or international levels. Unless at least one new venture achieves legitimacy threshold in a new industry there is no possibility for that industry to become institutionalized.

The authors advocate for further research at the intersection between legitimation, international entrepreneurship and emerging markets in order to further advance the emergent theory.

The data suggest that in order for an INV to achieve cognitive legitimacy and socio-political legitimacy in an emerging industry located in an emerging economy, and successfully internationalize, it shall design a robust business model targeting both internal and external stakeholders; engage in persuasive argumentation invoking familiar cues and scripts; engage in political negotiations promoting and defending incentive and operating mechanisms; and overcome the country-of-origin effect by pursuing technology legitimation strategy.

Governments and NGOs may wish to see new industries emerge but they lack the means and mandate to establish and lead them themselves, instead rely on enabling actions, such as investment in capacity building. However, building capacity for an as-yet non-existent industry in an emerging economy may prove to be counter-productive, driving a brain drain of qualified workers who are forced to migrate to find suitable work. The work leads the authors to speculate about whether there may be a role for investment in programs of industry legitimacy building in pursuit of public policy objectives.

The study puts forward a process model of new industry legitimation. The model theorizes the process of change from an initial condition in which an industry does not exist to a final condition in which it is institutionalized. The model addresses the case where the initial catalyst is the formation of an INV that is the seed for the birth of the industry. Since both the new venture and the new industry lack cognitive and socio-political legitimacies, the model theorizes temporal emergence of these at organizational and industry levels, leading ultimately to institutionalization.

The paper focuses on legitimation and legitimation strategies applied by companies. Following the process of systematic review, we analyse empirical studies exploring legitimation and legitimation strategies from different theoretical perspectives. Using the key findings by reconnoitering and comparing the theoretical background, approaches, methodologies and findings of these empirical studies, we outline potential directions for research in the legitimation strategies of firms engaged in international business operations.

Small and medium enterprises (SMEs) commonly struggle to acquire needed financial, human, and technological resources. The above being stated, recent scholarly research argues that SMEs that are able to successfully navigate the legitimacy threshold are better able to gather the resources they need to survive and grow. This article provides an empirical test of that claim by examining whether the presence of a corporate parent positively influences SME resource acquisition. Results of the study show that SMEs with corporate parents, when compared to like-sized independent SMEs, have higher credit scores, have more complete management teams, use more computers, and are more likely to be on the Internet. These differences are most pronounced for very small firms and diminish in significance as firm size increases. Study implications include the notion that presence of a corporate parent likely represents a successful navigation of the legitimacy threshold, positively increasing SME resource acquisition.