Organizational Legitimacy Research Articles

Research on the Impact of Party Organization Embedding on the Corporate Environmental Performance

The party organization’s participation in the governance of state-owned enterprises can affect corporate environmental performance. First of all, in terms of stakeholders’ theories, enterprises should not pursue the interests of shareholders in the traditional sense, but to maximize the overall interests of stakeholders. As a special group in China’s corporate governance, the party organization has the right to participate in the decision of major environmental matters on the corporate. At the same time, the party organization urges enterprises to support the policies of the party, play an important role in supervising the environmental performance of the enterprise, and then maintain the overall interests of the stakeholders. Secondly, under the framework of organizational legitimacy, the party organization embedded mainly through the supervision effect and checks and balance effects to improve the environmental performance of the enterprise. Therefore, this paper studies the relationship between party organizations participating in the governance of state-owned enterprises and corporate environmental performance. This paper argues that the "two-way entry" of the party organization has a positive correlation with the corporate environmental performance, that is, the higher the "two-way entry" of party organizations participating in the governance of state-owned enterprises, the higher the environmental performance of state-owned enterprises will be improved accordingly. Also, after further robustness tests, this conclusion is still established.

The Dirty Work of Faith-washing in a Faith-friendly Business

Drawing on faith/spirituality at work and organizational legitimacy literatures, a case study of a large global meat company is used to deconstruct the concept of faith-friendly business and explore how faith-washing and faith-straddling can provide a business with legitimacy and potentially distract stakeholders from irresponsible activities. In particular, I focus on the faith-friendly communications and initiatives in relation to treatment of non-salaried employees as a primary stakeholder of the company. I highlight a disconnect from religious social thought on meaningful and dignified work and many of the concepts found in the modern faith/spirituality at work literature, as well as societal expectations on health and safety in the workplace. Implications are provided for practice and research, including theoretical development in the areas of strategic legitimacy management, faith-washing, and faith-straddling in organizations.

The impact of social responsibility on organizational legitimacy

As part of the strategies that companies implement to stay current and comply with international guidelines is social responsibility. The objective of this research is to analyze the factors of social responsibility that lead to the construction of the organizational legitimacy of companies in Ciudad Obregón. The importance of this research focuses on verifying to what extent the social responsibility activities carried out by companies lead to legitimization. As part of the intellectual merit and the contribution that this research intends to make to knowledge is the quantitative measurement of the organizational legitimacy variable, this variable has been measured in studies that come from European countries, so it is intended to analyze the variable in this country. The research is non-experimental quantitative, cross-sectional correlational, the hypotheses of this study will be verified through the structural equation model (SEM). Among the findings identified, it is found that legitimacy is explained by 45% by the dimensions of social responsibility of socially responsible companies in Ciudad Obregón, identifying that the social activities they promote are the key factor for the perception of the legitimacy of said companies.

Impact of sustainability reporting and performance on organization legitimacy

Impact of sustainability reporting and performance on organization legitimacy

Granted Utility, a Proposal for the Rhetoric of Nonprofit Wrongdoing

This article explores the discourse of nonprofit wrongdoing through a thematic analysis of over 450 texts, including media coverage and organizational responses, surrounding four cases of nonprofit wrongdoing. These cases include theft, mismanagement of funds, lying about 9/11, and administering unintentional yet lethal doses of medication. The findings extend prior work on organizational rhetoric and propose the notion of granted utility – an assumed foundational view of the usefulness and underlying benefit of nonprofit organizations – as key for understanding nonprofit rhetoric. The findings suggest that recognizing granted utility allows organizations to focus on answering responsibility-focused questions of organizational legitimacy while maintaining utility-focused messages that reinforce granted utility when wrongdoing occurs.

Assessing the roles of farmer organizations for effective agricultural water management in Sri Lanka

CONTEXTThe ancient Sri Lankan village tank cascade system (VTCS) is a unique agricultural system that irrigates 35% of rice lands in Sri Lanka. Climate change, population growth, and social determinants are increasing pressure on VTCS, and the available water resources are being limited and competing with other water users. Therefore, effective water management on the field and landscape scale needs attention to address these challenges. OBJECTIVESince community-based water management bodies have been recognized as a leading approach for effective field-level water management, this study aimed to assess the behavior of farmer organizations (FOs), understand their capacities for field-level water management, and determine improvements required to achieve more effective field-level water management. METHODSWe surveyed 357 respondents from 21 FOs in the Deduru Oya river basin. FO behavior in five categories was assessed: 1) organizational rules, legitimacy, and culture; 2) organizational hierarchy and decision-making; 3) leadership; 4) communication and coordination; and 5) motivational incentives and organizational stability. Respondents rated their perception of the organizational behavior of the FO they participate in on a Likert scale. In addition, we conducted key informant interviews with 11 field officers of relevant government bodies who work closely with the FOs we studied. RESULTS AND CONCLUSIONFOs showed great diversity in their organizational behavior. Overall transparency, participatory decision-making, internal communication, and leadership were identified as key behaviors supporting efficient water management by FOs. Organizational culture, external communication, and organizational stability were all found to have significant improvement needs. FO behaviors in terms of organizational culture have major gaps in several areas, including poor organizational legitimacy awareness, poor financial accountability, unhealthy revenue generation, insufficient environmental consideration, and poor record keeping. Interestingly, FO members from different hierarchical layers disagreed on behavior within their own FOs. Additionally, conflicting responses among FOs and government agency field officers were also observed, highlighting the need to inspect field officers' actions by senior authorities. There is a need to improve FO behaviors in identified weak areas for better irrigation water management. SIGNIFICANCEThe recommendations of this study offer multi-scale solutions, including solid capacity building through knowledge sharing and highlighting the gaps aimed at strengthening FO behaviors that support effective field-level water management. The findings and recommendations are informative in terms of investments required to enable FOs to fulfill their potential as efficient water managers at the community scale. Furthermore, these findings may help in national policy making.

Entrepreneurs’ Personality Traits and Social Enterprise: A Legitimation Perspective

Abstract Prosocial personality traits are thought to be essential characteristics of social entrepreneurs. However, extant research has typically focused on how personality traits affect individuals to simply engage in social entrepreneurship but not on the actual prosocial behavior they employ or the eventual outcomes. We posit that studying the link between personality traits and organizational legitimacy, a salient outcome for social enterprise development, is a fruitful avenue for research. Building on the legitimation perspective, we examine the underlying mechanisms and contextual conditions in the relationship between personality traits (agreeableness specifically) and social enterprise legitimacy. Empirical analysis of 230 social enterprises in China demonstrates that a social enterprise’s legitimation strategy via network centrality and the contingent role of the focal venture’s development stage importantly conditions the effectiveness of the social entrepreneurs’ personality traits and their impact on social enterprise legitimacy. Implications for theory and practice are discussed.

Challenges associated with sustainability accounting and reporting practices: a legitimacy perspective

PurposeThe purpose of this study was to use legitimacy theory to discuss three important aspects of sustainability accounting and reporting practices: the historical building of legitimacy for such practices, how organizations have adhered to them when building organizational legitimacy in a new legitimacy context (the Middle East and North Africa [MENA] region) and how sustainability professionals assess the legitimacy of them in this context.Design/methodology/approachThe study applied an exploratory qualitative design and a paradigm-type approach to organizational discourse analysis. It used a document analysis and eight expert interviews as data sources.FindingsThe findings revealed that sustainability accounting and reporting face considerable challenges in the MENA region. Four discourses on organizational sustainability in the region were identified, namely, the normative/pragmatic, compliance, restrictive and performative discourses.Practical implicationsAwareness of the challenges and mechanics of sustainability accounting and reporting practices is important for managers, policymakers and consumers, who typically lack in-depth understanding of such practices and so would benefit from being better able to assess companies’ sustainability performance. The four identified discourses facilitate stakeholders’ understanding of sustainability practices in the MENA region.Originality/valueThe legitimacy of sustainability accounting and reporting has not previously been comprehensively investigated in non-Western contexts. This study discusses three important aspects of legitimacy: legitimacy of an object, legitimacy of a subject and legitimacy from an evaluator’s perspective. In doing so, it identifies the paradoxical nature of organizations’ attempts to comply with sustainability reporting practices.

LA RESPONSABILIDAD SOCIAL COMO FACTOR PARA LALEGITIMIDAD ORGANIZACIONAL DE LAS EMPRESAS MEXICANAS

As part of their business strategies, companies seek to legitimize themselves before their interest groups through their social responsibility activities. These strategies should allow them to compete in the market every time they position their image and their financial performance increases. Therefore, the objective of this research is to analyze social responsibility and explain how it contributes to the construction of the organizational legitimacy of large Mexican companies, and to measure whether said legitimacy generates an impact on financial performance. The research is non-experimental quantitative, cross-sectional correlational, the hypotheses of this study were verified through a structural equation model (SEM) with the use of the Smart-PLS statistical tool. The study population was Mexican companies that are socially responsible, that are listed on the Mexican Stock Exchange and that publish their financial results through sustainability reports. The data was collected through an adapted instrument, managing to collect information through a convenience sample, that is, without considering financial companies, applied to a sample of 39 companies. Among the findings, it is shown that corporate social responsibility measured through its three main dimensions (economic, social and environmental) explain the organizational legitimacy built by the companies on the Mexican Stock Exchange and that said legitimacy also has a positive impact on their financial performance as a result of said legitimacy.

Under pressure: Finding organizational legitimacy through the supply chain

This study analyzes whether firms face a tradeoff in responding to pressures of shareholders versus stakeholders in their quest for supply chain management excellence. Are firms that are recognized and rewarded for their supply chain management practices less likely than other firms to have a strong record in community relations, product qualities, employee relations, environmental sustainability and diversity measures? To answer this question, the study utilizes event study, OLS regression and panel data analyses of firms receiving a Gartner Supply Chain Top 25 ranking and a comparative sample of these same firms in non-ranked years. The findings indicate that shareholders react positively to a Gartner ranking, suggesting that ranked firms receive significant incentives to pursue recognition. Additionally, positive stakeholder practices are significantly stronger for firms ranked versus those not ranked. These findings suggest that firms can successfully navigate the pressures congruent with both shareholder and stakeholder priorities through supply chain excellence.

Bourdieusian capital conversion during crises of socio-political legitimacy: Sponsorship of the arts by Barclays Bank, 1972 to 1987

This paper advances our understanding of how organisations engage in the process of Bourdieusian capital conversion during crises of socio-political legitimacy. We do so by analysing the arts sponsorship strategies of Barclays between 1972 and 1987. During this period, Barclays faced numerous challenges to its organisational legitimacy as a result of its continued dealings in apartheid South Africa and its ability to generate extraordinary profits despite general economic malaise in Britain. As a response, Barclays increased its sponsorship of the arts, exchanging its substantial economic capital for the symbolic capital associated with high-status arts institutions. We identify the forces that facilitated and inhibited these capital exchanges and how they affected Barclays’ sponsorship strategies. This paper will be of interest to Bourdieusian scholars interested in capital exchange, to business historians interested in banking in Britain during the 1970s and 1980s, and researchers interested in the evolution of corporate sponsorship and philanthropy.

ASEAN and Great Power Rivalry in Regionalism: From East Asia to the Indo-Pacific

The Association of Southeast Asian Nations (ASEAN), which serves as the linchpin of regionalism in East Asia, is facing a new challenge of great power politics. This article explores ASEAN's position in and strategy for taking cooperative regional initiatives by referring to the management of confrontational politics between rival states. It explains ASEAN's handling of great power politics theoretically by impartial enmeshment for managing great powers’ material interests and moral legitimacy in developing specific ideational frameworks. This article argues that ASEAN managed great powers’ rivalry by enmeshing them into its regional initiatives impartially and maintaining organisational legitimacy by developing systems of socio-cultural norms. It also contends that ASEAN needs, in envisioning the future of Indo-Pacific regionalism, to extend its strategic reach through alignments with other parties and enhance moral legitimacy by deepening and broadening normative frameworks for advancing collective interests for the Indo-Pacific region.

Pay attention to me! The role of endorsements, patents, gender and prior experience in startup media attention

PurposeThe purpose of this paper is to explore the antecedents of media attention in the context of early-stage startups. While many studies have examined the implications of media attention on firm outcomes, few have investigated the antecedents especially in the context of early-stage startups who significantly lack organizational legitimacy. This study attempts to answer an important and yet unanswered question: What type of startups are more likely to be covered by the media?Design/methodology/approachUsing Poisson regression, the authors analyze all media articles written about 315 early-stage ventures in the USA.FindingsThe authors found that startups with a prestigious investor or a patent have more media attention and startups with a female founder or prior entrepreneurial experience have less. The results suggest that entrepreneurial signals do play a role in media attention, but that the signal–signaler relationship may be more complicated than that in the investment literature.Practical implicationsEntrepreneurs may benefit from signaling less noisy and unambiguous signals that the media pays more attention to, such as getting an endorsement from reputable third parties early on, which might activate noisy signals.Originality/valueThe contribution of this paper is to extend the current literature on media attention and entrepreneurship by shedding light on attributes of startups that may help or hurt the volume of media attention in an uncertain and noisy environment.

A bibliometric analysis of cultural finance

We present a systematic review of research conducted on culture in finance journals, accompanied by bibliometric summary analysis. We summarize publication and citation trends, as well as identify the most prolific and impactful contributors. We discover several major themes of cultural finance research: (i) governance, (ii) culture and financial decision making, (iii) culture and investing, (iv) social trust and firm governance, (v) religion and religiosity, and (vi) cultural distance and finance. We also identify current themes relating to individualism and risk taking, regulations, religiosity and venture capital, and organizational legitimacy. We use our summary of thematic development to suggest future research directions.

Generating and managing legitimacy: how the OECD established its role in monitoring sustainable development goal 4

ABSTRACT This paper identifies and analyses the legitimation strategies used by the OECD as it expanded its role in global educational governance. Whilst the literature recognises the mainly discursive sources of legitimacy which the OECD derives from its testing regime, especially PISA, what remains unexplored is how exactly it has created the legitimacy to monitor SDG 4 – an arena where it has not been previously involved. Drawing on Suchman’s framework for analysing organisational legitimacy, we identify six strategies. We show how these: were used to promote the OECD’s pragmatic, moral, and cognitive legitimacy; progressed over time from low-key passive conformity to active manipulation; and, operated on both an episodic and a continual basis.

Bureaucratic Representation in the IMF and the World Bank

The legitimacy and effectiveness of international organizations are often linked directly to issues of representation—not only on their high-level governing boards and in top leadership but also within their staff. This article explores two key questions of bureaucratic representation in the critical cases of the International Monetary Fund and World Bank. First, we seek to unpack three essential dimensions of staff representation—nationality, education, and gender—to explain how representation may matter for international organizations. Second, we aim to describe the multiple dimensions of representation in the International Monetary Fund and the World Bank over the past twenty years by deploying a novel dataset on staff demographics, focusing on ranks with decision-making authority within the institutions. Our descriptive analysis reveals that the International Monetary Fund and the World Bank have made considerable efforts to diversify their bureaucracies. Nonetheless, representation remains uneven; for example, nationals from middle- and low-income countries, women, and staff without economics degrees from prominent US- or UK-based universities are less present in key leadership positions. These results may be well explained by the particular needs of the institutions’ technical mandates and limits in the supply of qualified staff and, as such, need not be seen as suboptimal. Nonetheless, perceived imbalances in representation may continue to pose external legitimation and operational challenges to the International Monetary Fund and the World Bank in a complex political environment where such multidimensional representation is important to sustaining the buy-in of donor and borrower countries alike. To this end, we recommend that the International Monetary Fund and the World Bank enhance their diversity and inclusion efforts by increasing transparency via reporting disaggregated data on workforce composition and introducing annual requirements to publish progress reports with management feedback to strengthen internal and external accountability.

Unpacking the Bureaucratic Representation–Legitimacy Relationship in International Organizations: The Role of Elite Beliefs and Self-Legitimation Practices

AbstractThe link between bureaucratic representation and the perceived legitimacy of international organizations (IOs) is often cited in the literature. However, we do not know exactly how this works empirically. In this article, I introduce two variables to better understand the bureaucratic representation–IO legitimacy relationship: elite beliefs about geographical representation and self-legitimation practices. The theoretical framework bridges the literature on IO legitimacy in international relations and the literature on representative bureaucracy in public administration. Based on the case of the United Nations Secretariat and semistructured interviews with staff members, human resources experts, and member state representatives, the qualitative analysis points to two conclusions. First, this article presents the various representative bureaucracy–related legitimation practices employed by the bureaucracy at the discursive, institutional, and behavioral levels. Second, bureaucratic representation is perceived as a democratic, fair, and technocratic source of legitimacy by member state representatives. This article adds to the empirical study of IO legitimacy and to recent studies on representative bureaucracy in IOs.

To be more different or just the same? Means versus ends in hybrid organizational legitimacy

PurposeThis paper aims to consider the legitimacy challenges faced by hybrid organizations, examining the narrative strategies hybrids use in responding to these challenges and offering a framework for managers to consider in their choice of narratives.Design/methodology/approachA narrative analysis of texts addressing the legitimacy of the business models used by four hybrid organizations is conducted.FindingsThe results of the analysis suggest that the nature of conflicting stakeholder demands – centered on goals or means – is an integral factor influencing hybrids’ choice of narrative strategies to emphasize distinctiveness or conformity.Research limitations/implicationsThis paper adds to extant research examining the challenges hybrid organizations face and emphasizes that the choice of narrative strategies is an important factor hybrids must consider when managing legitimacy. Generalizability is a notable limitation of the case approach; the authors suggest areas for future research to address this limitation.Practical implicationsThe research offers a practical framework for hybrids’ leaders, as they manage legitimacy, choosing to emphasize distinctiveness or conformity in the face of conflicts regarding goals or means.Originality/valueBy studying the legitimacy challenges faced by hybrid organizations, this study can form a more complete view of legitimation, encompassing different types of enterprises offering distinct value propositions.

Social capital and organizational legitimacy as competitive advantages in the information and communications technology sector

Information and Communications Technology Sector has been experimenting important challenges related to rapid technological changes motivated by consumers´ requirements. Social capital and organizational legitimacy are considered as key assets for long-term survival and success. The main purpose of this research is to quantify the positive effects that SC and legitimacy have on customer loyalty and commitment. The results achieved through the application of PLS-SEM to treat the 986 effective responses show the positive and significant connection between the considered variables. This research contributes offering additional empirical evidence on intangible assets management and will help companies' managers to build stronger relationships with their customers.

Green procurement and green innovation for green organizational legitimacy and access to green finance: The mediating role of total quality management

AbstractGreen manufacturing practices and total quality management (TQM) are relevant mechanisms that hold promise for firms to plan and monitor their activities for sustainable outcomes. However, despite their potential for sustainability and continuous improvement, their application and study in the literature have remained largely separated and underexplored. To address this gap, we draw on the institutional and stakeholder theories to examine how green procurement, green product innovation and green process innovation enhance green organizational legitimacy and access to green finance by using TQM as a mediator in these relationships. We used the partial least square structural equation modeling (PLS‐SEM) technique to analyze survey data from 244 manufacturing firms in Ghana. The results showed that green procurement influenced TQM and green organizational legitimacy but not access to green finance. Likewise, green product innovation and green process innovation enhanced TQM, green organizational legitimacy, and access to green finance. TQM had differential degrees of mediation on the effects of green procurement, green product innovation, and green process innovation on green organizational legitimacy and access to green finance. We contribute to prior studies by integrating green manufacturing practices and TQM in ways that help managers of manufacturing firms who wish to unravel the complexities of integrating green manufacturing practices and TQM.