Abstract

A significant body of academic work has explored the ways in which hybrid organizations seek to secure external legitimacy. However, there is a more limited understanding of the ways in which organizational units in hybrid organizations seek to acquire internal legitimacy – legitimacy which is conferred by internal stakeholders. This study draws on more than a century of communications in a Dutch cooperative bank to uncover how a major organizational unit enacted distinct discursive strategies to seek internal legitimacy. The paper extends prior work by showing how internal legitimacy work – the efforts to shape, reinforce, or suppress internal legitimacy judgments – in a hybrid organization is a dynamic process whereby an internal unit generates multiple complementary narratives to promote a fit between its own attributes and the legitimacy evaluations by internal audiences. In addition, it shows how internal legitimacy work can promote this fit by attempting to manipulate not only the impressions of the internal unit's attributes, but also its audiences’ understanding of wider cultural norms of the day, on which their legitimacy judgments are based. In this vein, the paper highlights how discursive internal legitimacy work seeks to generate a taken-for-granted organizational position for the internal units concerned.

Highlights

  • Organizations seek legitimacy from various sources to justify their existence (Scott, 2014)

  • The dotted vertical lines represent the five periods in Dutch history identified earlier. It shows how these periods are visually consistent with changes in the types of legitimacy sought by Rabobank Nederland (RN)

  • The literature has acknowledged how internal legitimacy work in hybrid organizations has received only limited attention despite its theoretical and empirical significance (Balogun et al, 2019; Brown and Toyoki, 2013) and how it is “underexplored and undertheorized” (Sapir, 2020, p. 2). This limited attention is surprising, because internal legitimacy work is reliant upon the logics in circulation in the organization, and processes of internal legitimacy work are likely to be complicated in hybrid organizations

Read more

Summary

Introduction

Organizations seek legitimacy from various sources to justify their existence (Scott, 2014). Established as one of the fundamental ideas underpinning institutional theory, societal approval is considered key to the viability of organizations (DiMaggio and Powell, 1991). Institutional theory predicts that organizations need to appeal to sufficiently sized and powerful groups of stakeholders to successfully lay claim to resources. Over time, organizations need to adapt to changing societal patterns of value and cultural significance to remain legitimate (Angeli and Jaiswal, 2015; Stucchi et al, 2015). This definition suggests that legitimacy is about cognitive credibility – it highlights how organizational narratives may or may not sufficiently explain the existence of the organization and its appeals to outside audiences (Deephouse and Suchman, 2008).

Methods
Results
Discussion
Conclusion
Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call