Toward an Integrative Research Framework for New Venture Legitimacy Judgement Formation
Legitimacy is a critical resource for new ventures. Yet, our review of the literature indicates that the process through which new venture legitimacy judgments are bestowed by stakeholders is under-theorized. Additionally, the consequences of the legitimacy judgment for the stakeholder have not been adequately incorporated in prior research frameworks. We employ the absorptive capacity construct to address these limitations and propose an integrative research framework that includes the stakeholder in the legitimacy judgment formation process, and paves the way for empirical testing of these underlying processes.
Ashforth, B.E., & Gibbs, B.W. 1990. The double-edge of organizational legitimation. Organizational Science, 1: 177-194.
Bansal, P., & Clelland, I. 2004. Talking trash: Legitimacy, impression management, and unsystematic risk in the context of the natural environment. The Academy of Management Journal, 45: 93-103.
Barsness, Z.I., Diekmann, K.A., & Seidel,
M.L. 2005. Motivation and opportunity: The role of remote work, demographic dissimilarity, and social network centrality in impression management. Academy of Management Journal, 48: 401-419.
Bell, J.R. 2009. Disproportionate distribution of stock ownership among initial founders in start-up ventures: Survey results and a ranking of factors. Journal of Small Business Strategy, 20: 1-22.
Bengtsson, J. 2001. Manufacturing flexibility and real options: A review. International Journal of Production Economics, 74: 213-224.
Bitektine, A. 2011. Toward a theory of social judgments of organizations: The case of legitimacy, reputation, and status. Academy of Management Review, 36: 151-179.
Bolino, M.C., Kacmar, M.K., Turnley, W.H., & Gilstrap, J.B. 2008. A multi- level review of impression management motives and behaviors. Journal of Management, 34: 1080-1109.
Boulding, K. E. 1956. General systems theory—the skeleton of science. Management Science, 2(3): 197-208.
Bowman, E.H., & Hurry, D. 1993. Strategy through the option lens: An integrated view of resource investments and incremental choice process. Academy of Management Review, 18: 760-782.
Bruton G. D., Ahlstrom, D., & Li, H. 2010. Institutional theory and entrepreneurship: Where are we now and where do we need to move in the future. Entrepreneurship Theory & Practice, 34: 412-440.
Cohen, M.D. 1991. Individual learning and organizational routines: Emerging connection. Organizational Science, 2: 135-139.
Cohen, W.M., & Levinthal, D.A. 1990. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35: 128-152.
Cornelissen, J.P., & Clarke, J.S. 2010. Imagining and rationalizing opportunities: Inductive reasoning and the creation and justification of new ventures. Academy of Management Review, 35: 539-557.
Daghfous, A. 2004. Absorptive capacity and the implementation of knowledge- intensive best practices. SAM Advanced Management Journal, 69: 27-34.
De Clercq, D., & Dimov, D. 2008. Internal knowledge development and external knowledge access in venture capital investment performance. Journal of Management Studies, 45(3), 585-612.
Deephouse, D.L. 1996. Does isomorphism legitimate? Academy of Management Review, 39: 1024-1039.
Delmar, F., & Shane, S. 2004. Legitimating first: Organizing activities and the survival of new ventures, Journal of Business Venturing, 19: 385-410.
Deng, X., Doll, W.J., & Cao, M. 2008. Exploring the absorptive capacity to innovation/productivity link for individual engineers engaged in IT enabled work. Information and Management, 45: 75-87.
Dewey, J. 1933. How we think. Boston, MA: Heath.
Donaldson, T., & Preston, L.E. 1995. The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20: 65-91.
Dowling, J., & Pfeffer, J. 1975. Organizational legitimacy: Social values and organizational behavior. The Pacific Sociological Review, 18: 122-136.
Drori, I., Honig, B., & Sheaffer, Z. 2009. The life cycle of an internet firm: Scripts, legitimacy, and identity. Entrepreneurship Theory & Practice, 33: 715-738.
Elsbach, K.D., & Kramer, R.M. 2003. Assessing creativity in Hollywood pitch meetings: Evidence for a dual-process model of creativity judgments. Academy of Management Journal, 46: 283-301.
Fosfuri, A., & Tribó, J.A. 2008. Exploring the antecedents of potential absorptive capacity and its impact on innovation performance. Omega, 36: 173-187.
Galbraith, J. K. (2001). Designing Organizations: An Executive Guide to Strategy, Structure, and Process. Jossey Bass, CA
Garrison, R.D., Anderson, R., & Archer, W. 2001. Critical thinking, cognitive presence and computer conferencing in distance education. The American Journal of Distance Education, 15: 7-
Godwin, L.N., Stevens, C.E., & Brenner,
N.L. 2006. Forced to play by the rules? Theorizing how mixed-sex founding teams benefit women entrepreneurs in male-dominated contexts. Entrepreneurship Theory & Practice, 30(5): 623-642.
Gottfried, A.E., Fleming, J.S., & Gottfried,
A.W. 2001. Continuity of academic intrinsic motivation from childhood through late adolescence: A longitudinal study. Journal of Educational Psychology, 93: 3-13.
Gray, P.H., & Meister, D.B. 2004. Knowledge sourcing effectiveness. Management Science, 50: 821-834.
Griffith, R., Redding, S., & Van Reenen, J. 2003. R&D and absorptive capacity: Theory and evidence. The Scandinavian Journal of Economics, 105: 99-118.
Harris, A.B., Mosakowski, E., & Dimov, D. 2008 .Entrepreneurial text, prior knowledge and investor interest. Frontiers of Entrepreneurship Research, 28: Article 14.
Hotho, J.J., Becker-Ritterspach, F., & Saka- Helmhout, S. 2011. Enriching absorptive capacity through social interaction. British Journal of Management, 22: 1-19.
Jansen, J.J.P., Van Den Bosch, F.A.J., & Volberda, H.W. 2005. Managing potential and realized absorptive capacity: How do organizational antecedents matter? Academy of Management Journal, 48: 999-1015.
Kankanhalli, A., Pee, L.G., Tan, G.W., & Chhatwal, S. 2012. Interaction of individual and social antecedents of learning effectiveness: A study in the IT research context. IEEE Transactions on Engineering Management, 59: 115-128
Kast, F. E., & Rosenzweig, J. E. 1972. General systems theory: Applications for organization and management.
Academy of Management Journal, 15(4), 447-465.
Khaire, M. 2010. Young and no money? Never mind: The material impact of social resources on new venture growth. Organization Science, 21(1): 168-185.
Khoury, T.A., Junkunc, M., & Deeds, D.L. 2013. The social construction of legitimacy through signaling social capital: Exploring the conditional value of alliances and underwriters at IPO. Entrepreneurship Theory & Practice, 37(3): 569-601.
Kogurt, B., & Kulatkilaka, N. (2001). Capabilities as real options. Organization Science, 12: 744-758.
Kolb, D. A. 1984. Experiential learning: Experience as the source of learning and development. Englewood Cliffs, NJ: Prentice-Hall Inc.
Kole, J.A., & Healy, A.F. 2007. Using prior knowledge to minimize interference when learning large amounts of information. Memory and Cognition, 35: 124-137.
Lamin, A., & Zaheer, S. 2012. Wall Street vs. Main Street: Firm strategies for defending legitimacy and their impact on different stakeholders. Organization Science, 23(1): 47-66.
Lane, P.J., Koka, B.R., & Pathak, S. 2006. The reification of absorptive capacity: A critical review and rejuvenation of the construbt. Academy of Management Review, 31: 833-863.
Le, N.T.B., & Nguyen, T.V. 2009. The impact of networking on bank financing: The case of small and medium-sized enterprises in Vietnam. Entrepreneurship Theory & Practice, 33(4): 867-887.
Lefkowitz, L. S., and Lesser, V. R. 1988. Knowledge Acquisition as Knowledge Assimilation. International Journal of Man-Machine Studies, 29: 215-226.
Liden, R.C., & Mitchell, T.R. 1988. Ingratiatory behaviors in organizational setting. Academy of Management Review, 13: 572-587.
Lounsbury, M., & Glynn, M.A. 2001. Cultural entrepreneurship: Stories, legitimacy, and the acquisition of resources. Strategic Management Journal, 22: 545-564.
Lumpkin, G.T., McKelvie, A., Gras, D.M.,
& Nason, R.S. 2010. Is strategy different for very small and new firms? Journal of Small Business Strategy, 21: 1-26.
Lumpkin, G.T., Moss, T.W., Gras, D.M., Kato, S., & Amezcua, A.S. 2011. Entrepreneurial processes in social contexts: How are they different, if at all? Small Business Economics, (in press: available online since December 3, 2011).
Maguire, S., Hardy, C., & Lawrence, T.B. 2004. Institutional entrepreneurship in emerging fields: HIV/AIDS treatment advocacy in Canada. Academy of Management Journal, 47(5): 657-679.
McGrath, R.G. 1999. Falling forward: Real options reasoning and entrepreneurial failure. Academy of Management Review, 24: 13-30.
McGrath, R.G., Ferrier, W.J., & Mendelow, A.L. 2004. Real options as engines of choice and heterogeneity. Academy of Management Review, 29: 86-101.
Meyer, J.W., & Scott, W.R. 1983. Centralization and the legitimacy problems of local government. In J.W. Meyer and W.R. Scott (Eds.), Organizational environments: Ritual and rationality: 199-215. Beverly Hills, CA: Sage.
Mishina, Y., Block, E.S., & Mannor, M.J. 2012. The path dependence of organizational reputation: How social judgment influences assessments of capability and characters. Strategic Management Journal, 33: 459-477.
Mitchell, R.K. 2002. Entrepreneurship and stakeholder theory: Comment on Ruffin Lecture #2 delivered by Professor S. Venkataraman. Ethics and Entrepreneurship, 3: 175-195.
Mitteness, C.R., Baucus, M.S., & Norton,
W.I. Jr. 2013. Establishing cognitive legitimacy in emerging organizations: The role of prestige. Journal of Small Business Strategy, 23(1): 71-91.
Nagy, B.G., Pollack, J.M., Rutherford, M.W., & Lohrke, F.T. 2012. The influence of entrepreneurs’ credentials and impression management behaviors on perceptions of new venture legitimacy. Entrepreneurship Theory & Practice, 36(5): 941-965.
Navis, C., & Glynn, M.A. 2010. How new market categories emerge: Temporal dynamics of legitimacy, identity, and entrepreneurship in satellite radio, 1990- 2005. Administrative Science Quarterly, 55: 439-471.
Packalen, K.A. 2007. Complementing capital: The role of status, demographic features, and social capital in founding teams’ abilities to obtain resources. Entrepreneurship Theory & Practice, 31: 873-891
Piaget, J. 1977. The development of thought: Equilibrium of cognitive structures. New York: Viking.
Pollack, J.M., Rutherford, M.W., & Nagy,
B.G. 2012. Preparedness and cognitive legitimacy as antecedents of new venture funding in televised business pitches. Entrepreneurship Theory & Practice, 36(5): 915-939.
Rehder, B., & Murphy, G. L. 2003. A knowledge-resonance (KRES) model of category learning. Psychonomic Bulletin
& Review, 10: 759-784.
Ruebottom, T. 2013. The microstructures of rhetorical strategy in social entrepreneurship: Building legitimacy through heroes and villains. Journal of Business Venturing, 28: 98-116.
Rutherford, M.W., & Buller, P.F. 2007. Searching for the legitimacy threshold. Journal of Management Inquiry, 16: 78-92.
Rutherford, M.W., Buller, P.F., & Stebbins,
J.M. 2009. Ethical considerations of the legitimacy lie. Entrepreneurship Theory & Practice, 33(4): 949-964.
Scott, W.R. 1995. Institutions and organizations. Thousand Oaks, CA: Sage.
Shepherd, D.A., & Zacharakis, A. 2003. A new venture’s cognitive legitimacy: An assessment by customers. Journal of Small Business Management, 41:148- 167.
Sine, W.D., David, R.J., & Matsuhashi, H. 2007. From plan to plant: Effects of certification on operational start-up in the emergent independent power sector. Organization Science, 18(4): 578-594.
Sohn, M.H., Anderson, J.R., Reder, L.M., & Goode, A. 2004. Differential fan effect and attentional focus. Psychonomic Bulletin and Review, 11: 729-734.
Suchman, M. 1995. Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20: 571-610.
Suddaby, R., & Greenwood, R. 2005. Rhetorical strategies of legitimacy. Administrative Science Quarterly, 50(1), 35-67.
Szulanski, G. 1996. Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17: 27–43.
Teece, D., & Pisano, G. 1994. The dynamic capabilities of firms: An introduction. Industrial and Corporate Change, 3: 537-556.
Todorova, G., & Durisin, B. 2007. Absorptive capacity: valuing a reconceptualization. Academy of Management Review, 32: 774-786.
Tornikoski, E.T., & Newbert, S.L. 2007. Exploring determinants of organizational emergence: A legitimacy perspective. Journal of Business Venturing, 22: 311-335.
Tost, L.P. 2011. An integrative model of legitimacy judgments. Academy of Management Review, 36: 686-710.
Vance, C.M., & Paik, Y, 2005. Forms of host-country national learning for enhanced MNC absorptive capacity. Journal of Managerial Psychology, 20: 590-607.
Voelker, T.A., & McDowell, W.C. 2010. Performance of historically underrepresented firms in the public- private sector. Journal of Small Business Strategy, 21: 18-38.
Volberda, H.W., Foss, N.J., & Lyles, M.A. 2010. Absorbing the concept of absorptive capacity: How to realize its potential in the organization field. Organization Science, 21: 931-951.
Zahra, S.A., & George, G. 2002. Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27: 185-203.
Zhu, H., Hitt, M.A., & Tihanyi, L. 2006. The internationalization of SMEs in emerging economics: institutional embeddedness and absorptive capacities. Journal of Small Business Strategy, 17: 1-26.
Zimmerman, M.A., & Zeitz, G.J. 2002. Beyond survival: Achieving new venture growth by building legitimacy. Academy of Management Review, 27: 414-431.
Zott, C., & Huy, Q.H. 2007. How entrepreneurs use symbolic management to acquire resources. Administrative Science Quarterly, 52: 70-105.