Abstract

Drawing on the legitimacy perspective within institutional theory, we test a proposed theoretical model of new venture legitimacy rooted in the notion that legitimacy judgments provide an important basis for buying firms’ supplier selection decision-making. Our study explores two interrelated research questions: What is the relationship between new venture legitimacy (i.e. a buying firm’s perception of the new venture’s actions as being appropriate, desirable, and capable) and the probability of being selected as a supplier by an established buying firm?, and How is this probability of selection affected by the buying firm’s prior experience with new ventures?

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