Legitimacy Flashcards
Legitimacy definition
Zimmerman and zeitz
View legitimacy as a social judgement of acceptance, appropriateness and or desirability
Legitimacy is not self decreed and cannot be self proclaimed because it depends upon the options of those who are evaluating the subject
LON liability of newness
Younger orgs have a higher propensity to fail than older ones
Stinchcombe
Meyer and Rowan
To survive a venture needs legitimacy, social support and approbation from consistants from its institutional environment
Legitimacy strategies
Conformance Selection Manipulation Creation Zimmerman zeitz
Entrepreneurs gain legitimacy from
Storytelling (martins et al) Symbolic management (zott and huy) Visual symbols (Clarke)
Zimmerman zeitz reputation
Oil industry tarnished - oil spill Exxon in Alaskan waters
Chemical industry - environment groups attackrd
Banking and medicine - legitimate
Lounsbury and Glynn
legitimacy as a process where orgs continuously make and remake stories to maintain their identity. These efforts importantly complement and extend other strategic efforts by firms that focus on gaining and sustaining competitive advantages
LON internal and external hurdles
Internal - lack of reliable routines, learning new roles
External - legitimacy (lack of), uncertainty of environment
Competition
Sources of legitimacy
Regulatory - adhering to regs, rules and standards
Moral - societal judgement on is this right
Cognitives - taken for grantedness assumptions
Industry - product, services and practices acceptable - eg Zimmerman oil and chemical and Medicine/ bank
Ventures institutional legitimacy
Society looking in Confirming to institutional expectations of environment by abiding to regs, seek endorsement, build credible management, expose value norms and certification
Strategic legitimacy
Manipulation external actors perceptions of venture
Managers looking out
So signalling appropriate symbols: lobbying advertising, impression management, networking, resource combination
Distance from institutionalised claims
Red note banks - donkey ad
Legitimacy consequences
Business consequences
Legality
Costs of having it (impressive grounds)
Legacy (have to live up to stated things)
Personal consequences
Example - oak digital marketing
Some had tried to gain legitimacy by focusing on sustainability - however some stakeholders didn’t actually care, so then they focus less on that then can feel demoralised
Legitimacy lies
Misrepresentation (increase sales, appear larger, optimism)
Legitimacy process model
Zimmerman and zeitz
Strategies - legitimacy - Resources - survabl - growth
Zott and huy
Symbols represent an integral part of people knowledge structures
Personal credibility - taken for grantedness
Professional organising - formal structures, managing resources
Organisational achievement - judged on what accomplished
Quality of relationships - prestige, personal attention
Clarke reading
With the use of visual cues entrepreneurs manage the expression of their emotions and also make sure that stakeholders experience positive emotions by careful managing surroundings.
Findings suggest that serial entrepreneurs better at effectively using symbols.
Stories aren’t enough
