Advanced

Effects of Being New and Legitimacy

Hässel, Anders (2011)
Department of Business Administration
Abstract
New entry and being new has often been a topic of scholars within different research fields, and so has legitimacy. There are many theories which address implications and advantages of being new or engaging in new entry. For example, Barney (1991) argue for the importance of the resource based view, Freeman (1983) highlights the correlation between age and death rate of new firms and Besanko et al. (2007) writes about advantages and disadvantages of being the first-mover. In its turn, legitimacy has also been a hot topic and caught the attention of many researchers and its importance to acquire resources has been widely highlighted. Delmar & Shane (2004) state that obtaining legitimacy is necessary to obtain resources and Zimmerman & Zeitz... (More)
New entry and being new has often been a topic of scholars within different research fields, and so has legitimacy. There are many theories which address implications and advantages of being new or engaging in new entry. For example, Barney (1991) argue for the importance of the resource based view, Freeman (1983) highlights the correlation between age and death rate of new firms and Besanko et al. (2007) writes about advantages and disadvantages of being the first-mover. In its turn, legitimacy has also been a hot topic and caught the attention of many researchers and its importance to acquire resources has been widely highlighted. Delmar & Shane (2004) state that obtaining legitimacy is necessary to obtain resources and Zimmerman & Zeitz (2002) argue legitimacy helps overcoming liabilities of newness. Thereby, different theories have identified interrelations between being new and legitimacy, but there are little integrative research performed between the two fields.
One example of integrative research is performed by Lieberman & Montgomery (1998), in which they integrate the resource based view and theories about first-mover-advantages. As an outcome, the two different theories have been recognized as interrelated and by combining them, valuable insights have been gained. In the same manner of integration as Lieberman & Montgomery, my purpose is to reach a deeper understanding of legitimacy’s relation and importance when being new and engaging in new entry. By applying autoethnography, I will produce results from my experiences and observations from Alpha (May 2010 – June 2011) and compare them with existing theories and my results. I will both question theory by comparing them to my results, but also question my own actions and practices by comparing them with theory. By doing so, I intend to produce insights of what effect legitimacy has and how important it is for ventures being new or engaging in new entry, what sources and different types of legitimacy there is and how new ventures or new entrants can manage and acquire legitimacy. I will first present the theoretical framework and methodology, followed by results and analysis, which is structured in four parts: (5.1) being new and new entry, (5.2) the role, impact and sources of legitimacy, (5.3) strategies to acquire, gain or manage legitimacy, and at last (5.4) summarized critic towards theory but also the empirics from Alpha. I will thereafter summarize the paper in a conclusion and suggest future research. (Less)
Please use this url to cite or link to this publication:
author
Hässel, Anders
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Management of enterprises, RBV FMA, new entry, legitimacy, new venture, Företagsledning, management
language
Swedish
id
2004319
date added to LUP
2011-06-03
date last changed
2012-11-12 11:27:15
@misc{2004319,
  abstract     = {New entry and being new has often been a topic of scholars within different research fields, and so has legitimacy. There are many theories which address implications and advantages of being new or engaging in new entry. For example, Barney (1991) argue for the importance of the resource based view, Freeman (1983) highlights the correlation between age and death rate of new firms and Besanko et al. (2007) writes about advantages and disadvantages of being the first-mover. In its turn, legitimacy has also been a hot topic and caught the attention of many researchers and its importance to acquire resources has been widely highlighted. Delmar & Shane (2004) state that obtaining legitimacy is necessary to obtain resources and Zimmerman & Zeitz (2002) argue legitimacy helps overcoming liabilities of newness. Thereby, different theories have identified interrelations between being new and legitimacy, but there are little integrative research performed between the two fields.
One example of integrative research is performed by Lieberman & Montgomery (1998), in which they integrate the resource based view and theories about first-mover-advantages. As an outcome, the two different theories have been recognized as interrelated and by combining them, valuable insights have been gained. In the same manner of integration as Lieberman & Montgomery, my purpose is to reach a deeper understanding of legitimacy’s relation and importance when being new and engaging in new entry. By applying autoethnography, I will produce results from my experiences and observations from Alpha (May 2010 – June 2011) and compare them with existing theories and my results. I will both question theory by comparing them to my results, but also question my own actions and practices by comparing them with theory. By doing so, I intend to produce insights of what effect legitimacy has and how important it is for ventures being new or engaging in new entry, what sources and different types of legitimacy there is and how new ventures or new entrants can manage and acquire legitimacy. I will first present the theoretical framework and methodology, followed by results and analysis, which is structured in four parts: (5.1) being new and new entry, (5.2) the role, impact and sources of legitimacy, (5.3) strategies to acquire, gain or manage legitimacy, and at last (5.4) summarized critic towards theory but also the empirics from Alpha. I will thereafter summarize the paper in a conclusion and suggest future research.},
  author       = {Hässel, Anders},
  keyword      = {Management of enterprises,RBV FMA,new entry,legitimacy,new venture,Företagsledning,management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Effects of Being New and Legitimacy},
  year         = {2011},
}