Journal:

Date:

Author: Suchman

Abstract:

Background and Context

Research Problem

Organizational legitimacy research has become fragmented across multiple theoretical traditions that often "talk past one another" despite studying the same phenomenon.

Theoretical Approach

The study synthesizes strategic and institutional approaches to legitimacy, bridging the gap between managerial perspectives and societal structuration dynamics.

Methodology

This is a comprehensive literature review and theoretical synthesis that develops new typologies to organize and integrate existing research on organizational legitimacy.

Three Distinct Types of Organizational Legitimacy

The study identifies three fundamental types of legitimacy that organizations can pursue, each operating on different behavioral dynamics
Pragmatic legitimacy is based on audience self-interest and direct exchanges
Moral legitimacy reflects normative approval and societal welfare considerations
Cognitive legitimacy stems from comprehensibility and taken-for-granted assumptions
Understanding these distinctions helps managers choose appropriate legitimation strategies

Comprehensive Framework for Legitimacy Management Challenges

Organizations face three distinct legitimacy management challenges throughout their lifecycle
Gaining legitimacy is most challenging for new organizations or those entering new sectors
Maintaining legitimacy requires ongoing vigilance despite appearing easier than initial acquisition
Repairing legitimacy becomes necessary when crises threaten organizational credibility
Each challenge requires different strategic approaches and resource commitments

Strategic Approaches Vary by Legitimacy Type and Management Challenge

The study provides a comprehensive 3x3 matrix mapping specific strategies to legitimacy types and management challenges
Pragmatic strategies focus on conforming to demands, selecting favorable markets, and advertising benefits
Moral strategies emphasize conforming to ideals, selecting appropriate domains, and demonstrating success
Cognitive strategies involve mimicking established models, seeking certification, and institutionalizing practices
Different situations call for different strategic combinations rather than one-size-fits-all approaches

Legitimacy Becomes More Powerful but Harder to Manipulate

The three types of legitimacy exist on a spectrum from easy to manipulate but weak, to difficult to manipulate but powerful
Pragmatic legitimacy can often be "purchased" through direct rewards but provides limited protection
Moral legitimacy requires genuine commitment to societal values and resists purely instrumental manipulation
Cognitive legitimacy, when achieved, becomes self-sustaining but is nearly impossible to directly control
Organizations must balance the trade-off between controllability and durability in their legitimacy strategies

Key Differences Between Strategic and Institutional Approaches

Strategic approaches view legitimacy as an operational resource that organizations can extract and deploy competitively
Institutional approaches see legitimacy as constitutive beliefs that construct organizations from the inside out
Strategic theorists emphasize managerial agency and the flexibility of symbolic manipulation
Institutional theorists focus on sector-wide structuration and cultural constraints that transcend individual control
Both perspectives offer valuable insights and should be integrated rather than viewed as competing explanations

Contribution and Implications

Provides the first comprehensive framework integrating fragmented legitimacy literatures across strategic and institutional traditions
Offers practical guidance for managers by identifying specific strategies appropriate for different legitimacy types and organizational challenges
Warns against potential pitfalls including the self-promoter's paradox and sector-leader's paradox that can undermine legitimation efforts
Establishes a foundation for future empirical research by clarifying conceptual distinctions and relationships between different legitimacy dynamics
Demonstrates that legitimacy management requires sophisticated understanding of audience psychology and cultural dynamics, not just symbolic manipulation

Data Sources

Legitimacy types visualization based on theoretical framework presented in Part II and Figure 1 typology matrix
Management challenges chart constructed from Part III discussion of gaining, maintaining, and repairing legitimacy
Strategic approaches matrix derived from Table 1 "Legitimation Strategies" showing the 3x3 framework of strategies
Legitimacy spectrum visualization based on theoretical analysis in Part II regarding the relationship between different legitimacy types
Approaches comparison constructed from Part I discussion contrasting strategic and institutional perspectives on legitimacy