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
Why can cognitive legitimacy be difficult for radical innovations
There may be no path to follow therefore not easy to explain
How can the businesses get cognitive legitimacy
By adopting previously no management methods
What is industry legitimacy
Some industries have more legitimacy than others
How can industry legitimacy be built
It can be built from certificating
What are the four strategies for building legitimacy
Conformance,
selection,
manipulation
and creation
What is conformance in relation to legitimacy
Following rules
What is selection in relation to legitimacy
Selected industry or customer or geography that suits objectives
What is manipulation in relation to Legitamcy
Introducing a change to what has gone before
What is creation in relation to legitimacy
Creating a new social context new roles beliefs and expectations and example online shopping
