Legitimacy is crucial to firm survival and growth. By complying with taken-for-granted rules and norms, firms earn legitimacy and, as a result, elicit critical resources from key stakeholders (Aldrich & Fiol, 1994). While legitimacy is ultimately a collective-level phenomenon, individuals’ judgments and perceptions coalesce to guide those assessments. As a result, legitimacy judgments vary across actors. Because firms often encounter conflicting institutional demands when entering a market for the first time (Pache & Santos, 2010), those judged to be legitimate by one group may be judged illegitimate by others.
Sutton, Andrew and Holcomb, Tim R.
"LEGITIMATE TO WHOM? LEGITIMACY JUDGMENT ASYMMETRIES AS INSTITUTIONAL ENTREPRENEURSHIP OPPORTUNITIES (INTERACTIVE PAPER),"
Frontiers of Entrepreneurship Research: Vol. 33
, Article 10.
Available at: http://digitalknowledge.babson.edu/fer/vol33/iss10/10