How Do Organisations Gain Legitimacy? Legitimacy as Social Process

Seminar paper from the year 2019 in the subject Sociology - Basics and General, grade: 1,3, Free University of Berlin, course: Institutional Theory, language: English, abstract: In her paper, the author comes from the idea that there is not one definition of legitimacy and try to summarize the arguments on what legitimacy is. Boyd (2000) suggests that legitimacy is dependent on social structure, systems and norms and that legitimation is a social process, however it is not clear how large a part of the social system must confer its approval for an organisation. These statements she also analyses. In her paper she argues that there is a plethora of theories analysing the gaining of legitimacy, however the process of gaining legitimacy and its establishment depends on diverse factors. To support the argument, she has researched and compared various theories and thus discussed different aspects on how legitimacy is gained. The paper is organised as follows: firstly, she will sum up the theories on what legitimacy means and how is it approached by different authors. Secondly, she discusses the questions of actors and who establishes legitimacy, then I focus on the theories about what role do resources play in establishing legitimacy and lastly, I analyse the approach of legitimacy as a constraint. Another thesis underlying her paper is from Deephouse (1996) who argues that organizational legitimacy is defined as a status conferred by social actors. He states that legitimacy depends on the perspective of a particular social actor, whose values and expectations for action should be congruent with the aspiring legitimate organisation. Moreover, the social actors approve legitimacy for an organisation, where only certain actors have the authority to confer legitimacy, however they need to be identified first. In her seminar paper she also discusses Hybels (1995) who theorizes that legitimation comes from the actors through conferral of resources and communication of positive reputation, however she points out the resource-based view from Tilling (2010) where he suggests that legitimacy is an operational resource too. During her research, she discussed several authors who research the aspects of legitimacy important for her paper. Suchman (1995) and Hamidu (2015) who analyse the concept of legitimacy, Dowling and Pfeffer (1975) who address the importance of resources and the idea of legitimacy as a constraint, Hybels (1995) whose work opposes the argument about resources of the two authors, and other authors who contribute to her topic.