Exploring the impact of legitimacy on the competitiveness of international firms

Abstract

Objective and interest of the work: The legitimacy of international firms is an important and complex issue that requires further academic development. International firms must enhance their legitimacy as a generator of competitive advantages to achieve their business objectives, both economic-financial and relational. However, there is a gap in the literature on the relationship between relationship marketing and legitimacy that needs to be filled. Methodology design: Through an empirical study of Shein’s buyers, the model is validated using the PLS-SEM methodology. Results: The implications of this research represent a breakthrough in the academic field by relating both theories applied to the internationalisation of companies. In addition, this research proposes implications for management by establishing strategies for international firms to achieve legitimacy, not only to enter international markets but also to create stable and long-lasting relationships with consumers. Practical implications: This research advances the theory of legitimacy for international firms. International companies must legitimise themselves and build customer loyalty in their host countries if they are to survive and generate economic benefits.