Which of the following is the most appropriate approach to building organization-based legitimacy?

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Design/methodology/approach
Originality/value
Acknowledgements
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Ying Cheng (School of Economics and Business Administration, Chongqing University, Chongqing, China)

Yanyan Liu (School of Business Administration, Chongqing University of Science and Technology, Chongqing, China)

Adam R. Cross (Department of International Studies, Xi'an Jiaotong-Liverpool University, Suzhou, China)

Abstract

Purpose

Business incubators are advantageous to new venture legitimacy because they provide rich access to entrepreneurial resources, and their incubation networks can offer endorsement to incubatees. However, empirical evidence on this topic is limited, and the existing literature relies predominantly on the Western context. Given that not all developing country incubators have resourceful and reputable external entrepreneurial networks as in the industrialized countries, and that new ventures need to build legitimacy along cognitive and socio-political dimensions that require different actions to influence different stakeholders, this study investigates empirically how business incubators facilitate their incubatees to build legitimacy in a context where resource and reputation conditions are weak. The purpose of this paper is to clarify how business incubators perform legitimacy-building roles effectively.

Design/methodology/approach

A multiple case study of business incubators in Chongqing, a second-tier Chinese city, is presented. Using grounded theory, this paper draws its findings from a synthesis of interviews and secondary data of seven incubators and their ten incubatees.

Findings

The legitimacy-building role of business incubators is performed well in this research context. Evidence is presented that incubators play different roles in building different dimensions of incubatees’ legitimacy. Government-associated incubators play a salient role in building incubatees’ socio-political legitimacy whilst non-government related incubators shape their incubatees’ cognitive legitimacy.

Originality/value

This study contributes to the business incubators literature by revealing how incubators perform the legitimacy-building role when their resource endorsement is weak. The results suggest that incubators need to strengthen their ties with external stakeholders and that new ventures need to take key stakeholders into consideration when they select incubators to enter.

Keywords

Business incubators
New ventures
Cognitive legitimacy
Socio-political legitimacy
Resource endowment
Institutional endorsement
China

Acknowledgements

The authors wish to acknowledge the anonymous incubator managers and venture founders for their support during the interview process. This study has been supported by the Natural Science Foundation of Chongqing, China (cstc2020jcyj-msxmX0245), by the 2021 Humanities and Social Sciences Research Project of Chongqing Municipal Education Commission (21SKGH438) and by the Talent Project of Chongqing University of Science and Technology (ckrc2020014).

Citation

Cheng, Y., Liu, Y. and Cross, A.R. (2022), "Legitimacy-building role of incubators: a multiple case study of activities and impacts of business incubators in a developing Chinese city", Chinese Management Studies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CMS-07-2020-0288

Publisher

Emerald Publishing Limited

Entrepreneurial Small Business Katz 5th Edition-Test BankTo purchase this Test Bank with answers, click the link belowDescriptionEntrepreneurial Small Business Katz 5th Edition- Test BankSample QuestionsInstant Download With AnswersChapter 03Small Business Environment: Managing External RelationsTrue / False Questions1.As a firm establishes a track record for performance, that performance, alongwith the goods or services it creates become key elements of the firm’s andentrepreneur’s identity.True False2.Gathering resources for a business is easier during economic recessions thanduring economic boom times.True False3.Being a small business makes managing organizational culture harder than inlarger businesses.True False4.Organizational culture not only is the set of shared beliefs or basic assumptionsbut also include accepted ways of dealing with problems and challenges within acompany.

True False5.The goal of any small business owner is to manage external relations in order tominimize social capital.True False6.Small businesses high in social capital are less trusted when problems occur.True False7.Gaining legitimacy in small businesses is especially difficult for entrepreneursseen as “different”—women, minorities, home-based businesses, or businessesstarted by young people.True False8.Compared to a corporation, a sole proprietorship is usually considered morelegitimate by customers, suppliers, and investors.True False9.Social networking helps build long-lasting relationships into a person’s day-to-day business operations.True False10.Mutuality is the set of relationships and contacts with individuals andinstitutions a company establishes.True False

11.As the owner of a business, quickly admitting that the firm is in troubleindicates a lack of accountability.True False12.Sustainable entrepreneurship is an approach to the operation of the firm, theline of business of the firm, or both, which identifies or creates and thenexploits opportunities to make a profit in a manner that minimizes the depletionof natural resources, maximizes the use of recycled material, improves theenvironment, or any combination of these outcomes.True False13.LaRue Hosmer’s model for making ethical decisions is focused more on smallbusiness than big ones.True False14.An ethical decision should reflect a decision-maker’s real or presumedobligations to people and institutions in his or her firm and in its taskenvironment.True False15.In making moral decisions, it is possible to find oneself in the legal “right” butstill unable to make a viable business decision by pursuing legal recourse.

Which of the following are one of the three forms of legitimacy that entrepreneurs can develop?

Three types of legitimacy are particularly important for new ventures, including cognitive, regulative, and normative legitimacy (Aldrich and Fiol, 1994).

How can an entrepreneur generate legitimacy?

- You can generate legitimacy by visibly conforming to rules and expectations created by governments, credentialing associations, and professional organizations; by endorsing widely held values; and by visibly practicing widely held beliefs.

Which of the following would have a very short term approach to planning quizlet?

Which of the following would have a very short-term approach to planning? Individuals who look for opportunities to achieve their goal, even if the opportunity isn't the one related to their original goal.

What is the core of the Brie model?

The environment is usually the source of Inspiration, the I in the BRIE model. It is at the core of exchange in the BRIE model, since exchange is literally the firm or entrepreneur dealing with the environment - buying, selling, or trading across the boundary of the firm.