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Article
Publication date: 15 August 2023

Lourdes Rivero-Gutierrez, Pablo Cabanelas, Francisco Diez-Martin and Alicia Blanco-Gonzalez

Foreign markets possess different characteristics to domestic ones; this means that dynamic marketing capabilities (DMCs) should be adjusted. This paper aims to understand how…

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Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Originality/value

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.

Details

International Marketing Review, vol. 41 no. 1
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 11 November 2013

Francisco Díez-Martín, Camilo Prado-Roman and Alicia Blanco-González

The purpose of this paper is to clarify and extend knowledge concerning the relationship between legitimacy and organizational success within the framework of institutional…

7339

Abstract

Purpose

The purpose of this paper is to clarify and extend knowledge concerning the relationship between legitimacy and organizational success within the framework of institutional theory.

Design/methodology/approach

While previous research has found links between legitimacy and organizational success, the authors test this assumption by case analysis, on a sample of thirteen Spanish Mutual Guarantee Societies. Data were collected from survey questionnaire and Annual Financial Reports.

Findings

Results of the empirical examination confirm that, within this population, organizations with greater legitimacy obtain better organizational results as well as improved access to resources. The findings also show that not all dimensions of legitimacy contribute equally to organizational success.

Practical implications

For managers, the authors have included a recommendation that legitimacy is an important element of an organization's success that must be strategically managed and be considered as a required goal in the organization's strategic planning process. Managers should analyze legitimacy, in their own activity sector, to identify the most useful types of legitimacy. In the specific case of Spanish MGSs, the most beneficial strategic actions are those geared towards obtaining pragmatic legitimacy.

Originality/value

The analysis provides a new approach to measure legitimacy. It also provides empirical advances to the organizational legitimacy process, showing its usefulness as a key factor for organizational success.

Details

Management Decision, vol. 51 no. 10
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 29 December 2022

Francisco J. García-Rodríguez, Desiderio Gutiérrez-Taño and Inés Ruiz-Rosa

The purpose of this paper is to present an explanatory model of the factors that determine parental support for possible entrepreneurial initiatives of the parents' children. This…

563

Abstract

Purpose

The purpose of this paper is to present an explanatory model of the factors that determine parental support for possible entrepreneurial initiatives of the parents' children. This is one of the most important challenges to promote the next generation of entrepreneurs.

Design/methodology/approach

A perspective based on the theory of planned behavior (TPB) is adopted, and the model is extended to integrate the antecedents of personal attitude toward children's entrepreneurship. The model is tested on a sample of 400 parents.

Findings

Perceived behavioral control (PBC), namely the perception that parents have about the readiness of the children to be entrepreneurs plays the greatest effect on the intention of supporting children's entrepreneurial behavior. In addition, parents' perceptions of how people from the immediate surroundings value the children's possible entrepreneurial behavior are the second most influential variable in the parents' intention to support such behavior. Finally, a parent's personal attitude toward the parent's children's entrepreneurship is the third most relevant variable to explain intention to support, practically with the same weight as subjective norms (SNs).

Practical implications

The results seem to confirm the importance of entrepreneurship development policies that focus on family characteristics and mindsets rather than on more traditional formal institutional support, such as business advice or financial resources. Family emerges as a key mediator to transfer the rules of normative and cultural-cognitive dimensions. Moreover, the results indicate the important role of entrepreneurship education in enhancing entrepreneurship not only due to the positive direct impact on students' entrepreneurial intentions, but also by changing parents' perceptions regarding the children's capabilities and, therefore, influencing the support for entrepreneurial behavior.

Originality/value

Previous studies have analyzed the influence of support from the immediate environment, especially the family, on young people's entrepreneurial behavior and have defined the types of support the family environment can provide. However, there is a missing link in the literature regarding the determinants of family support, despite the determinants' importance in configuring the normative and cultural-cognitive dimensions and the determinants' impact on society, promoting entrepreneurship.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 1 August 2016

John Brummette and Lynn M. Zoch

Through its use of a nationwide survey that assessed the most significant personal and organizational values among the general public, the purpose of this paper is to identify how…

1889

Abstract

Purpose

Through its use of a nationwide survey that assessed the most significant personal and organizational values among the general public, the purpose of this paper is to identify how individuals’ personal values serve an important role in guiding the value expectations they have for organizations.

Design/methodology/approach

A research firm was hired to disseminate a survey to a stratified sample of 735 of adults in the US measures used in the study were a socially desirable human values subscale and a socially desirable organizational values subscale.

Findings

The results from several regression analyses confirmed that stakeholders’ personal values predict the values they expect from organizations with which they choose to conduct business.

Research limitations/implications

Organizations must recognize that values play a significant role in the legitimation process as both are represented by actions and social desirability. In the realm of corporate communication, organizations continually encounter situations in which they must establish, maintain and defend their legitimacy using strategic communication efforts. These difficult feats can only be accomplished by viewing legitimacy as a measureable construct that is ultimately shaped by acting and communicating in ways that meet the value-driven expectations of stakeholders.

Originality/value

This paper fills a gap in the literature that identifies whether stakeholders personal values drive or influence the values they expect to be displayed by legitimate organizations.

Details

Corporate Communications: An International Journal, vol. 21 no. 3
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 2 February 2021

Xiaoyong Zheng

This paper aims to examine the relationships between the group affiliates’ dual legitimacy (membership legitimacy and societal legitimacy) and dual resource acquisition…

289

Abstract

Purpose

This paper aims to examine the relationships between the group affiliates’ dual legitimacy (membership legitimacy and societal legitimacy) and dual resource acquisition (intra-group and out-group), and the moderating roles of environmental uncertainty and munificence in the emerging economies.

Design/methodology/approach

This paper adopts hierarchical regression analysis to test the hypotheses based on the unique data of 251 group affiliated firms in China and applies the alternative measurements and alternative methodology of structural equation modeling into robustness check to confirm the results.

Findings

The results show as follows: the group affiliates can benefit from membership legitimacy for intra-group resource acquisition and out-group resource acquisition through the mediations of societal legitimacy and intra-group resource acquisition. However, in the linkage between affiliates’ membership legitimacy and intra-group resource acquisition and the linkage between societal legitimacy and out-group resource acquisition, environmental uncertainty plays the positive moderating roles while environmental munificence plays the negative moderating roles. Under the condition of high environmental uncertainty and low environmental munificence, the linkage between membership legitimacy and intra-group resource acquisition, and the linkage between societal legitimacy and out-group resource acquisition reach the strongest level.

Research limitations/implications

The findings highlight the importance of dual legitimacy building for group affiliates to acquire resources both inside and outside the business group when they operate in emerging economies characterized by high environmental uncertainty and low environmental munificence. However, it does not explore the contextual factors (e.g. institutional distance) affecting the relationship between the affiliate’s membership legitimacy and societal legitimacy. Then more group-level factors are expected to be included and explored with multi-level models in the future studies.

Originality/value

The findings reveal the mechanism of how group affiliates benefiting differently from dual legitimacy to acquire resources in the emerging economies, which also provide a new interpretation for the questions of who benefiting more from the group affiliation, how and why (Carney et al., 2009). This research also explores the moderating roles of task environmental characteristics (environmental uncertainty and environmental munificence) on the affiliate's dual legitimacy and dual resource acquisition, which helps understand why legitimacy building is more important in terms of resource acquisition in the emerging economy characterized by uncertainty and non-munificence.

Details

Chinese Management Studies, vol. 15 no. 3
Type: Research Article
ISSN: 1750-614X

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Article
Publication date: 1 December 2022

Jens Gammelgaard and Rajesh Kumar

The purpose of this paper is to further the understanding of how the regulatory foci of the multinational enterprises (MNE) headquarters and the subsidiary lead to internal…

227

Abstract

Purpose

The purpose of this paper is to further the understanding of how the regulatory foci of the multinational enterprises (MNE) headquarters and the subsidiary lead to internal legitimacy crises. This paper discusses how pragmatic and moral legitimacy crises affect relational social capital.

Design/methodology/approach

The paper is conceptual.

Findings

This paper highlights the importance of internal legitimacy as well as the motivational orientations of headquarters and subsidiaries for the functioning of MNEs. Internal legitimacy management is crucial for building relational social capital. This study proposes that legitimacy crises are particularly likely to occur in cases of goal incongruence between headquarters and subsidiaries. This study postulates that organizations with a promotion-oriented institutional logic are concerned by the absence of pragmatic legitimacy processes. In contrast, given their aim of protecting the status quo, prevention-oriented institutional logic MNEs are concerned about the absence of moral legitimacy.

Originality/value

To the best of the authors’ knowledge, this paper is the first to explore the relationship between regulatory focus, internal legitimacy and relational social capital.

Details

Critical Perspectives on International Business, vol. 19 no. 3
Type: Research Article
ISSN: 1742-2043

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Article
Publication date: 17 June 2021

Christopher Wilson and Devin Knighton

This study aims to examine the effect of publics' legitimacy evaluations on Arthur W. Page's conceptualization of “reasonable freedom of action” by breaking it into two parts: (1…

548

Abstract

Purpose

This study aims to examine the effect of publics' legitimacy evaluations on Arthur W. Page's conceptualization of “reasonable freedom of action” by breaking it into two parts: (1) perceived organizational autonomy and (2) trust in the organization.

Design/methodology/approach

This study conducted an online experiment using a 2 (legitimacy: low, high) × 2 (legitimacy type: institutional, actional) between-subjects design. Measured variables included perceived organizational autonomy and trust.

Findings

Organizations acting in their own self-interest while ignoring community norms and expectations were perceived to be exercising higher levels of organizational autonomy and have lower levels of trust. The interaction between legitimacy type and level had an effect on perceived organizational autonomy and trust.

Research limitations/implications

Public's view their relationships with organizations from a perspective that prioritizes responsibility and conformity to community norms and expectations. Also, organizations have more to lose by acting in their own self-interest to resolve institutional legitimacy concerns and more to gain by handling them in a way that includes the public interest than when they are managing an actional legitimacy situation.

Practical implications

Societal norms, values and beliefs, which may have accommodated, or even supported, an organization's approach to doing business in the past, can change over time, calling into question an organization's legitimacy and its ability to operate in the public interest. As a result, organizational leaders need the Chief Communication Officer to help them understand current societal norms, values and beliefs.

Originality/value

This study addresses a core assumption of the organization–public relationship paradigm that has not yet been studied empirically. It also expands the understanding of organizational autonomy from a public perspective and examines the effect of legitimacy on organizational autonomy and trust.

Details

Corporate Communications: An International Journal, vol. 26 no. 4
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 12 February 2021

Amr Elalfy, Olaf Weber and Sean Geobey

We investigate the integration of the United Nation's Sustainable Development Goals (SDGs) into the Global Reporting Initiative (GRI)– based reporting thus exploring the factors…

4071

Abstract

Purpose

We investigate the integration of the United Nation's Sustainable Development Goals (SDGs) into the Global Reporting Initiative (GRI)– based reporting thus exploring the factors that influence the adoption of the SDGs by organizations.

Design/methodology/approach

We analyzed the GRI dataset provided by the GRI data secretariat. We analyzed 14,308 reports provided by 9,397 organizations between 2016 and 2017.

Findings

Larger organizations are more likely to integrate the SDGs into their reporting than smaller organizations. Secondly, publicly listed firms are more likely to address the SDGs. Thirdly, industries with higher sustainability impacts are more likely to address the SDGs in their reporting. Fourthly, our data confirm a regional effect with regard to SDG reporting. Moreover, organizations that follow international sustainability guidelines and standards such as becoming a member of the GRI Gold Community or using the GRI Content Index services and having external assurance are more likely to report on the SDGs.

Research limitations/implications

Corporations play an essential role in the achievement of the SDGs, which shape the future of the world's sustainable development. Nevertheless, SDGs reporting needs more research to analyze the factors that can influence it. The study contributed to the academic literature on CSR and legitimacy theory by analyzing institutional and regional factors that impact SDGs reporting.

Practical implications

The study provides insights about the integration of the SDGs into organizational reporting and accounting, including the adoption of the SDGs by small and medium enterprises (SMEs) and the benefits of the SDGs as a framework for strategic corporate sustainability.

Social implications

A global sustainability framework, such as the SDGs can be integrated into organizations sustainability reporting and accounting in a meaningful way.

Originality/value

This is the first study that analyzes the integration of the SDGs into GRI-based reporting. The study contributes to legitimacy theory by highlighting the factors, which contribute to the legitimacy-based adoption of the SDGs, including organizational size, being publicly listed, being from high-impact industries and certain global regions, etc. SDG reporting can help firms increase their organizational legitimacy across their stakeholders.

Details

Journal of Applied Accounting Research, vol. 22 no. 3
Type: Research Article
ISSN: 0967-5426

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