Skip to main content
Top

2018 | OriginalPaper | Chapter

The Origin of the Legitimacy of Organizations and Their Determining Factors

Authors : Camilo Prado-Román, Francisco Díez-Martín, Alicia Blanco-González, Alberto Prado-Román

Published in: Complex Systems: Solutions and Challenges in Economics, Management and Engineering

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

The aim of this research consists in analysing to what extent personal characteristics have an influence on the assessment process of organizational legitimacy. For this purpose, a questionnaire was used which examines the effect of five personal characteristics on four types of legitimacy. Subsequently, regression analysis was applied on a sample of 258 individuals. The results have shown that the persons with higher social awareness are more prone to make decisions about organizations taking into account the moral, regulatory and cognitive legitimacy. This type of assessment also occurs when the fear of receiving a social sanction increases. Likewise in the perception of a higher economic risk inherent to the result of a decision, people are more likely to make decisions based on cognitive and pragmatic legitimacy. Future research projects may confirm if the results of this investigation are repeated among different activity sectors and different sociodemographic environments. Accordingly, it would be possible to design a conceptual framework where the legitimacy preferences of interest groups are explained by sectors and personal characteristics. The results of this study extend the knowledge in the field of Institutional Theory about the origin of organizational legitimacy and the causes which condition it. It also facilitates improving the strategic planning of organizations by displaying the legitimacy preferences based on each person’s profile.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Literature
1.
go back to reference Aldrich, H.E., Fiol, C.M.: Fools rush in? The institutional context of industry creation. Acad. Manag. Rev. Acad. Manag. 19(4), 645–670 (1994) Aldrich, H.E., Fiol, C.M.: Fools rush in? The institutional context of industry creation. Acad. Manag. Rev. Acad. Manag. 19(4), 645–670 (1994)
2.
go back to reference Alonso-Almeida, M., Fernández de Navarrete, F.C., Rodriguez-Pomeda, J.: Corporate social responsibility perception in business students as future managers: a multifactorial analysis. Bus. Ethics Eur. Rev. 24(1), 1–17 (2015)CrossRef Alonso-Almeida, M., Fernández de Navarrete, F.C., Rodriguez-Pomeda, J.: Corporate social responsibility perception in business students as future managers: a multifactorial analysis. Bus. Ethics Eur. Rev. 24(1), 1–17 (2015)CrossRef
3.
go back to reference Bitektine, A.: Toward a theory of social judgments of organizations: the case of legitimacy, reputation, and status. Acad. Manag. Rev. 36(1), 151–179 (2011)CrossRef Bitektine, A.: Toward a theory of social judgments of organizations: the case of legitimacy, reputation, and status. Acad. Manag. Rev. 36(1), 151–179 (2011)CrossRef
4.
go back to reference Blanco-González, A., Cruz-Suárez, A., Díez-Martín, F.: The EFQM model as an instrument to legitimise organisations. In: Peris-Ortiz, M., Álvarez-García, J., Rueda-Armengot, C. (eds.) Achieving Competitive Advantage through Quality Management, pp. 155–169. Springer International Publishing (2015) Blanco-González, A., Cruz-Suárez, A., Díez-Martín, F.: The EFQM model as an instrument to legitimise organisations. In: Peris-Ortiz, M., Álvarez-García, J., Rueda-Armengot, C. (eds.) Achieving Competitive Advantage through Quality Management, pp. 155–169. Springer International Publishing (2015)
5.
7.
go back to reference Chen, J., Wu, H., Yao, X.: Status, legitimacy, and the presence of outside directors in China. Manag. Decis. 54(5), 1205–1221 (2016)CrossRef Chen, J., Wu, H., Yao, X.: Status, legitimacy, and the presence of outside directors in China. Manag. Decis. 54(5), 1205–1221 (2016)CrossRef
9.
go back to reference Cruz-Suárez, A., Prado-Román, A., Prado-Román, M.: Cognitive legitimacy, resource access, and organizational outcomes. RAE-Revista de Administração de Empresas 54(5), 575–584 (2014)CrossRef Cruz-Suárez, A., Prado-Román, A., Prado-Román, M.: Cognitive legitimacy, resource access, and organizational outcomes. RAE-Revista de Administração de Empresas 54(5), 575–584 (2014)CrossRef
10.
go back to reference Cruz-Suárez, A., Prado-Román, C., Díez-Martín, F.: Por qué se institucionalizan las organizaciones. Revista Europea de Dirección y Economía de la Empresa 23(1), 22–30 (2014)CrossRef Cruz-Suárez, A., Prado-Román, C., Díez-Martín, F.: Por qué se institucionalizan las organizaciones. Revista Europea de Dirección y Economía de la Empresa 23(1), 22–30 (2014)CrossRef
11.
go back to reference Cruz-Suárez, A., Prado-Román, C., Escamilla-Solano, S.: Nations of entrepreneurs: a legitimacy perspective. In: Peris-Ortiz, M., Sahut, J.-M. (eds.) New Challenges in Entrepreneurship and Finance, pp. 157–168. Springer International Publishing (2015) Cruz-Suárez, A., Prado-Román, C., Escamilla-Solano, S.: Nations of entrepreneurs: a legitimacy perspective. In: Peris-Ortiz, M., Sahut, J.-M. (eds.) New Challenges in Entrepreneurship and Finance, pp. 157–168. Springer International Publishing (2015)
12.
go back to reference Deephouse, D., Carter, S.: An examination of differences between organizational legitimacy and organizational reputation. J. Manag. Stud. 42(2), 329–360 (2005)CrossRef Deephouse, D., Carter, S.: An examination of differences between organizational legitimacy and organizational reputation. J. Manag. Stud. 42(2), 329–360 (2005)CrossRef
13.
go back to reference Deephouse, D.L.: Does isomorphism legitimate? Acad. Manag. J. 39(4), 1024–1039 (1996)CrossRef Deephouse, D.L.: Does isomorphism legitimate? Acad. Manag. J. 39(4), 1024–1039 (1996)CrossRef
14.
go back to reference Deephouse, D.L., Suchman, M.: Legitimacy in organizational institutionalism. In: Greenwood, R., Oliver, C., Suddaby, R., Sahlin-Andersson, K. (eds.) The Sage Handbook of Organizational Institutionalism, pp. 49–77. Sage Publications, London (2008)CrossRef Deephouse, D.L., Suchman, M.: Legitimacy in organizational institutionalism. In: Greenwood, R., Oliver, C., Suddaby, R., Sahlin-Andersson, K. (eds.) The Sage Handbook of Organizational Institutionalism, pp. 49–77. Sage Publications, London (2008)CrossRef
15.
go back to reference Díez-Martín, F., Blanco-González, A., Prado-Román, C.: Measuring organizational legitimacy: the case of mutual guarantee societies. Cuadernos de Economía y Dirección de la Empresa 43(junio), 115–144 (2010) Díez-Martín, F., Blanco-González, A., Prado-Román, C.: Measuring organizational legitimacy: the case of mutual guarantee societies. Cuadernos de Economía y Dirección de la Empresa 43(junio), 115–144 (2010)
16.
go back to reference Díez-Martín, F., Blanco-González, A., Prado-Román, C.: Explaining nation-wide differences in entrepreneurial activity: a legitimacy perspective. Int. Entrepreneurship Manag. J. 12(4), 1079–1102 (2016)CrossRef Díez-Martín, F., Blanco-González, A., Prado-Román, C.: Explaining nation-wide differences in entrepreneurial activity: a legitimacy perspective. Int. Entrepreneurship Manag. J. 12(4), 1079–1102 (2016)CrossRef
17.
go back to reference Díez-Martín, F., Prado-Román, C., Blanco-González, A.: Efecto del plazo de ejecución estratégica sobre la obtención de legitimidad organizativa. Investigaciones Europeas de Dirección y Economía de la Empresa 19(2), 120–125 (2013)CrossRef Díez-Martín, F., Prado-Román, C., Blanco-González, A.: Efecto del plazo de ejecución estratégica sobre la obtención de legitimidad organizativa. Investigaciones Europeas de Dirección y Economía de la Empresa 19(2), 120–125 (2013)CrossRef
18.
go back to reference Díez-Martín, F., Prado-Roman, C., Blanco-González, A.: Beyond legitimacy: legitimacy types and organizational success. Manag. Decis. 51(10), 1954–1969 (2013)CrossRef Díez-Martín, F., Prado-Roman, C., Blanco-González, A.: Beyond legitimacy: legitimacy types and organizational success. Manag. Decis. 51(10), 1954–1969 (2013)CrossRef
19.
go back to reference Drori, I., Honig, B.: A process model of internal and external legitimacy. Organ. Stud. 34(3), 345–376 (2013)CrossRef Drori, I., Honig, B.: A process model of internal and external legitimacy. Organ. Stud. 34(3), 345–376 (2013)CrossRef
20.
go back to reference Easterby-Smith, M., Thorpe, R., Jackson, P.R.: Management Research, 4th edn. SAGE Publications, London (2012) Easterby-Smith, M., Thorpe, R., Jackson, P.R.: Management Research, 4th edn. SAGE Publications, London (2012)
21.
go back to reference Edwards, P.J., Roberts, I., Clarke, M.J., Diguiseppi, C., Wentz, R., Kwan, I., Cooper, R., et al.: Methods to increase response to postal and electronic questionnaires. Cochrane Database Syst. Rev. (3) (2009) Edwards, P.J., Roberts, I., Clarke, M.J., Diguiseppi, C., Wentz, R., Kwan, I., Cooper, R., et al.: Methods to increase response to postal and electronic questionnaires. Cochrane Database Syst. Rev. (3) (2009)
22.
go back to reference Finch, D., Deephouse, D., Varella, P.: Examining an individual’s legitimacy judgment using the value-attitude system: the role of environmental and economic values and source credibility. J. Bus. Ethics 127(2), 265–281 (2015)CrossRef Finch, D., Deephouse, D., Varella, P.: Examining an individual’s legitimacy judgment using the value-attitude system: the role of environmental and economic values and source credibility. J. Bus. Ethics 127(2), 265–281 (2015)CrossRef
23.
go back to reference Garud, R., Schildt, H.A., Lant, T.K.: Entrepreneurial storytelling, future expectations, and the paradox of legitimacy. Organ. Sci. 25(5), 1479–1492 (2014)CrossRef Garud, R., Schildt, H.A., Lant, T.K.: Entrepreneurial storytelling, future expectations, and the paradox of legitimacy. Organ. Sci. 25(5), 1479–1492 (2014)CrossRef
24.
go back to reference Gil Aluja, J.: La selección de inversiones en futuro incierto. Revista de economía y empresa 7(17–18), 61–80 (1987) Gil Aluja, J.: La selección de inversiones en futuro incierto. Revista de economía y empresa 7(17–18), 61–80 (1987)
25.
go back to reference Gil Aluja, J.: El riesgo y la incertidumbre en el momento actual. Revista de economía y empresa 8(20–21), 7–28 (1988) Gil Aluja, J.: El riesgo y la incertidumbre en el momento actual. Revista de economía y empresa 8(20–21), 7–28 (1988)
26.
go back to reference Greenwood, R., Suddaby, R., Hinings, C.R.: Theorizing change: the role of professional associations in the transformation of institutionalized fields. Acad. Manag. J. 45(1), 58–80 (2002)CrossRef Greenwood, R., Suddaby, R., Hinings, C.R.: Theorizing change: the role of professional associations in the transformation of institutionalized fields. Acad. Manag. J. 45(1), 58–80 (2002)CrossRef
27.
go back to reference Haveman, H.A., David, R.J.: Ecologists and institutionalists: friends or foes? In: Greenwood, R., Oliver, C., Sahlin, K., Suddaby, R. (eds.) The Sage Handbook of Organizational Institutionalism, pp. 573–595. Sage, London (2008)CrossRef Haveman, H.A., David, R.J.: Ecologists and institutionalists: friends or foes? In: Greenwood, R., Oliver, C., Sahlin, K., Suddaby, R. (eds.) The Sage Handbook of Organizational Institutionalism, pp. 573–595. Sage, London (2008)CrossRef
28.
go back to reference Iglesias Pérez, F.: Estudio de la economía sumergida: relación entre legitimidad y medidas para combatirla. Tesis Universidad Rey Juan Carlos (2014) Iglesias Pérez, F.: Estudio de la economía sumergida: relación entre legitimidad y medidas para combatirla. Tesis Universidad Rey Juan Carlos (2014)
29.
go back to reference Kaufmann, A., Gil Aluja, J.: La programación de actividades por el método del semáforo. Revista europea de dirección y economía de la empresa 1(1), 7–14 (1992) Kaufmann, A., Gil Aluja, J.: La programación de actividades por el método del semáforo. Revista europea de dirección y economía de la empresa 1(1), 7–14 (1992)
30.
go back to reference Liñán, F., Urbano, D., Guerrero, M.: Regional variations in entrepreneurial cognitions: start-up intentions of university students in Spain. Entrepreneurship Reg. Dev. (Routledge) 23(3–4), 187–215 (2011)CrossRef Liñán, F., Urbano, D., Guerrero, M.: Regional variations in entrepreneurial cognitions: start-up intentions of university students in Spain. Entrepreneurship Reg. Dev. (Routledge) 23(3–4), 187–215 (2011)CrossRef
31.
go back to reference Maguire, S., Hardy, C.: Discourse and deinstitutionalization: the decline of DDT. Acad. Manag. J. 52(1), 148–178 (2009)CrossRef Maguire, S., Hardy, C.: Discourse and deinstitutionalization: the decline of DDT. Acad. Manag. J. 52(1), 148–178 (2009)CrossRef
32.
go back to reference Manrai, A.K., Andrews, R.L.: Two-stage discrete choice models for scanner panel data: an assessment of process and assumptions. Eur. J. Oper. Res. 111(2), 193–215 (1998)CrossRefMATH Manrai, A.K., Andrews, R.L.: Two-stage discrete choice models for scanner panel data: an assessment of process and assumptions. Eur. J. Oper. Res. 111(2), 193–215 (1998)CrossRefMATH
33.
go back to reference Meyer, J., Rowan, B.: Institutionalized organizations: formal structure as myth and ceremony. Am. J. Sociol. 83(2), 340–363 (1977)CrossRef Meyer, J., Rowan, B.: Institutionalized organizations: formal structure as myth and ceremony. Am. J. Sociol. 83(2), 340–363 (1977)CrossRef
34.
go back to reference Mingo, S.: Entrepreneurial ventures, institutional voids, and business group affiliation: the case of two Brazilian start-ups, 2002–2009. Academia Revista Latinoamericana de Administración 26(1), 61–76 (2013)CrossRef Mingo, S.: Entrepreneurial ventures, institutional voids, and business group affiliation: the case of two Brazilian start-ups, 2002–2009. Academia Revista Latinoamericana de Administración 26(1), 61–76 (2013)CrossRef
35.
go back to reference Oliver, C.: Strategic responses to institutional processes. Acad. Manag. Rev. 16(1), 145–179 (1991)CrossRef Oliver, C.: Strategic responses to institutional processes. Acad. Manag. Rev. 16(1), 145–179 (1991)CrossRef
36.
go back to reference Pfeffer, J., Salancik, G.R.: The External Control of Organization: A Resource Dependence Perspective. Harper & Row, New York (1978) Pfeffer, J., Salancik, G.R.: The External Control of Organization: A Resource Dependence Perspective. Harper & Row, New York (1978)
37.
go back to reference Pollack, J.M., Rutherford, M.W., Nagy, B.G.: Preparedness and cognitive legitimacy as antecedents of new venture funding in televised business pitches. Entrepreneurship Theory Pract. 36(5), 915–939 (2012)CrossRef Pollack, J.M., Rutherford, M.W., Nagy, B.G.: Preparedness and cognitive legitimacy as antecedents of new venture funding in televised business pitches. Entrepreneurship Theory Pract. 36(5), 915–939 (2012)CrossRef
38.
go back to reference Rosch, E.: Principles of categorization. In: Rosch, E., Lloyd, B.B. (eds.) Cognition and Categorization, pp. 27–48. Lawrence Erlbaum Associates (1978) Rosch, E.: Principles of categorization. In: Rosch, E., Lloyd, B.B. (eds.) Cognition and Categorization, pp. 27–48. Lawrence Erlbaum Associates (1978)
39.
go back to reference Ruef, M., Scott, W.: A multidimensional model of organizational legitimacy: hospital survival in changing institutional environments. Adm. Sci. Q. 43(4), 877–904 (1998)CrossRef Ruef, M., Scott, W.: A multidimensional model of organizational legitimacy: hospital survival in changing institutional environments. Adm. Sci. Q. 43(4), 877–904 (1998)CrossRef
40.
go back to reference Rutherford, M.W., Buller, P.F.: Searching for the legitimacy threshold. J. Manag. Inquiry 16(1), 78–92 (2007)CrossRef Rutherford, M.W., Buller, P.F.: Searching for the legitimacy threshold. J. Manag. Inquiry 16(1), 78–92 (2007)CrossRef
41.
go back to reference Scott, W.R.: Institutions and Organizations. SAGE Publications (1995) Scott, W.R.: Institutions and Organizations. SAGE Publications (1995)
42.
go back to reference Shepherd, D., Zacharakis, A.: A new venture’s cognitive legitimacy: an assessment by customers. J. Small Bus. Manag. 41(2), 148–167 (2003)CrossRef Shepherd, D., Zacharakis, A.: A new venture’s cognitive legitimacy: an assessment by customers. J. Small Bus. Manag. 41(2), 148–167 (2003)CrossRef
43.
go back to reference Singh, J., Tucker, D., House, R.: Organizational legitimacy and the liability of newness. Adm. Sci. Q. 31(2), 171–193 (1986)CrossRef Singh, J., Tucker, D., House, R.: Organizational legitimacy and the liability of newness. Adm. Sci. Q. 31(2), 171–193 (1986)CrossRef
44.
go back to reference Suchman, M.C.: Managing legitimacy: strategic and institutional approaches. Acad. Manag. Rev. 20(3), 571 (1995) Suchman, M.C.: Managing legitimacy: strategic and institutional approaches. Acad. Manag. Rev. 20(3), 571 (1995)
45.
go back to reference Thomas, T.E.: Are business students buying it? A theoretical framework for measuring attitudes toward the legitimacy of environmental sustainability. Bus. Strategy Environ. 14(3), 186–197 (2005)CrossRef Thomas, T.E.: Are business students buying it? A theoretical framework for measuring attitudes toward the legitimacy of environmental sustainability. Bus. Strategy Environ. 14(3), 186–197 (2005)CrossRef
46.
go back to reference Überbacher, F.: Legitimation of new ventures: a review and research programme. J. Manag. Stud. 51(4), 667–698 (2014)CrossRef Überbacher, F.: Legitimation of new ventures: a review and research programme. J. Manag. Stud. 51(4), 667–698 (2014)CrossRef
47.
go back to reference Wood, D.J.: Corporate social performance revisited. Acad. Manag. Rev. 16(4), 691–718 (1991) Wood, D.J.: Corporate social performance revisited. Acad. Manag. Rev. 16(4), 691–718 (1991)
48.
go back to reference Zimmerman, M., and Zeitz, G.J.: Beyond survival: achieving new venture growth by building legitimacy. Acad. Manag. Rev. 27(3), 414 (2002) Zimmerman, M., and Zeitz, G.J.: Beyond survival: achieving new venture growth by building legitimacy. Acad. Manag. Rev. 27(3), 414 (2002)
49.
go back to reference Zuckerman, E.W.: The categorical imperative: securities analysts and the illegitimacy discount. Am. J. Sociol. 104(5), 1398–1438 (1999)CrossRef Zuckerman, E.W.: The categorical imperative: securities analysts and the illegitimacy discount. Am. J. Sociol. 104(5), 1398–1438 (1999)CrossRef
Metadata
Title
The Origin of the Legitimacy of Organizations and Their Determining Factors
Authors
Camilo Prado-Román
Francisco Díez-Martín
Alicia Blanco-González
Alberto Prado-Román
Copyright Year
2018
DOI
https://doi.org/10.1007/978-3-319-69989-9_4

Premium Partner