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Managing institutional complexity: a longitudinal study of legitimacy strategies at a sportswear brand company


Baumann-Pauly, Dorothee; Scherer, Andreas; Palazzo, Guido (2016). Managing institutional complexity: a longitudinal study of legitimacy strategies at a sportswear brand company. Journal of Business Ethics, 137(1):31-51.

Abstract

Multinational corporations are operating in complex business environments. They are confronted with contradictory institutional demands that often represent mutually incompatible expectations of various audiences. Managing these demands poses new organizational challenges for the corporation. Conducting an empirical case study at the sportswear manufacturer Puma, we explore how multinational corporations respond to institutional complexity and what legitimacy strategies they employ to maintain their license to operate. We draw on the literature on institutional theory, contingency theory, and organizational paradoxes. The results of our qualitative longitudinal study show that managing corporate legitimacy is a dynamic process in which corporations adapt organizational capacities, structures, and procedures.

Abstract

Multinational corporations are operating in complex business environments. They are confronted with contradictory institutional demands that often represent mutually incompatible expectations of various audiences. Managing these demands poses new organizational challenges for the corporation. Conducting an empirical case study at the sportswear manufacturer Puma, we explore how multinational corporations respond to institutional complexity and what legitimacy strategies they employ to maintain their license to operate. We draw on the literature on institutional theory, contingency theory, and organizational paradoxes. The results of our qualitative longitudinal study show that managing corporate legitimacy is a dynamic process in which corporations adapt organizational capacities, structures, and procedures.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Globalization, Legitimacy, Institutional complexity, Paradox, Corporate social responsibility
Date:2016
Deposited On:21 Dec 2015 09:37
Last Modified:02 Feb 2018 09:41
Publisher:Springer
ISSN:0167-4544
OA Status:Closed
Publisher DOI:https://doi.org/10.1007/s10551-014-2532-x
Other Identification Number:merlin-id:12660

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