Creating legitimacy is an important means of gathering resources for new ventures. Although investors often consider venture legitimacy by means of tangible indicators such as profitability, risk analysis, and reputation, there are other factors that create legitimacy by means of emotional attraction, pleasant feeling and guilt reduction. We capture these factors within the concept of hedonic legitimation, a concept that draws on the well-established marketing literature on hedonic and utility values.
Greidanus, Nathan S. and Akhgari, Mahdi
"AFFECT IN THE ASK: EMOTION AS A LEGITIMATING MECHANISM IN INITIAL PUBLIC OFFERINGS (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 33
, Article 5.
Available at: https://digitalknowledge.babson.edu/fer/vol33/iss3/5