Legitamacy Flashcards
How legit achieved?
Meeting the expectations of stakeholders through orgs activities and outcomes
What is Liability of newness
The additional risk associated with start up ventures.
And example of liability of newness
Lack of management skills and entrepreneurial teams not used to working with each other
What are stakeholders looking for in a business to prove legitimacy
That the business is competent, efficient, employees and customers are treated fairly
What has legitimacy a close relationship with?
Resource acquisition and growth
What does increased legitimacy lead to?
Increase in resources
What does increase in resources lead to
Increase in legitimacy
What are the four types of legitimacy
Regulatory
Normative
Cognitive
Industry
How do you get regulatory legitimacy
Conforming to rules and regulations
How do you promote regulatory legitimacy to customers?
Certificates
Status
Becoming a LTD
What is normative legitimacy
Meeting the expectations of behaviour and values of society
How do you meet normative legitimacy
Generating appropriate profits, treating employees fairly minimising environmental impacts
How do individuals and organisations offer legitimacy to organisations
Adoption of product,
online reviews,
securing finance from high-profile investors
What is the major root of normative legitimacy
Endorsements
What is cognitive legitimacy
Making sure that the actions of people in charge makes sense and can easily be explained
