Abstract

PurposeThe authors explore how social approval assets, namely status and reputation, are used to legitimate and categorise a new national university. They argue that in the course of the legitimation process, status and reputation work as stakeholder-oriented value-creating benefits. The authors specifically analyse the discursive constructions and labels used in the process and how the process enables nationwide university reform.Design/methodology/approachThe authors’ longitudinal case study utilises critical discourse analysis and analyses media and policy discourses regarding the birth of Aalto University.FindingsThe findings suggest that the legitimation of the new university was accomplished through the use of two distinct discourses: one on higher education and another on the market economy. These discourses not only sought to legitimise the new university as categorically different from existing Finnish universities, but also rationalised the merger using the expected reputation and status benefits that were claimed would accrue for supporters.Practical implicationsThis study elaborates on the role of various social approval assets and labels in legitimation processes and explores how policy enforcement can take place in arenas that are not necessarily perceived as policymaking. For managers, it is crucial to understand how a chosen label (name) can result in both stakeholder support and resistance, and how important it is to anticipate the changes a label can invoke.Originality/valueThe authors propose that the use of several labels regarding a new organisation is strategically beneficial to attracting multiple audiences who may hold conflicting interests in terms of what the organisation and its offerings should embody. They propose that even though status and reputation have traditionally been defined as possessions of an organisation, they should be further understood as concepts used to disseminate and justify the interests, norms, structures and values in a stakeholder network.

Highlights

  • Status, legitimacy and reputation are valuable assets that organisations can use to attract or maintain social approval

  • We explore the recent changes in the higher education sector and exemplify why legitimacy, status and reputation have become so vital in the field

  • The discourse depicted a situation in which Finnish higher education was lagging behind on a global level, and that the reasons for this lay in operational preconditions such as insufficient funding and tight government control, which restricted organisational autonomy in financial, management and personnel issues

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Summary

Introduction

Legitimacy and reputation are valuable assets that organisations can use to attract or maintain social approval. The construction of reputation and status, in particular, is often perceived as a positive phenomenon, all social judgement processes seek to emphasise certain qualities and attributes and marginalise others How these social approval assets and valuecreating promises discursively emphasise or marginalise contextual factors related to space, time, practice, and change is important (Leitch and Palmer, 2010). Both discourses provided a new Mode 2 basis for universities, but from different angles. To secure and advance the wellbeing of Finnish business life and society To advance the national innovation policy A triple helix model university Focus on areas that are important to Finland and the Finnish economy, increasing the expected value of excellence, namely the reputation of Finland, Finnish businesses, and the New University itself Research, teaching, and economic development

Results
Discussion and conclusions
23. Game Theory
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