Levels of legitimacy development in internationalization- Multinational enterprise and civil society interplay in institutional void

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Abstrakt

Typically, studies on subsidiary legitimation take the perspectives of compliance and isomorphism to examine multinational enterprises (MNEs') legitimacy; our study considers both isomorphism and institutional innovation perspectives to examine how subsidiaries, in collaboration with civil society actors, co-develop various levels (degrees) of legitimacy in an institutional void. The study finds four overlapping levels of legitimacy—“acceptance,” “image,” “endorsement,” and “synergy” (a combination of acceptance and efficiency)—that subsidiaries co-develop throughout the internationalization process. We bring new insight into legitimation: that an isomorphism perspective of legitimacy alone cannot explain the complexity of subsidiary legitimation in an institutional void because subsidiaries not only earn acceptance by compliance, but also create/co-create image, endorsement, and synergy as outputs of institutional innovation. We contribute to the global strategic management in emerging economies.
OriginalsprogEngelsk
Artikelnummer6
TidsskriftGlobal Strategy Journal
Vol/bind11
Udgave nummer2
Sider (fra-til)269-303
Antal sider35
ISSN2042-5791
DOI
StatusUdgivet - 16 maj 2021

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