Analysis on the Mechanism of Improving Legitimization of Internet Companies -- From the Perspective of Stakeholders
- DOI
- 10.2991/iceemr-18.2018.85How to use a DOI?
- Keywords
- stakeholders, legitimacy constraint, legitimate strategy, Internet company, improving legitimization
- Abstract
How to break through multiple legitimacy constraints to gain stakeholder recognition is a problem that every startup company must solve. From the perspective of stakeholders, this paper applies case study and grounded theory, reveals the inner mechanism of legitimacy formation and evolution of Giant Network and JD in the life cycles. Finally, we use grounded theory to build the mechanism of improving legitimization of Internet companies. The conclusions are as follows: during the process of improving legitimization of internet companies, the conformance strategy and manipulation strategy are mainly used to overcome the regulative legitimacy constraint and cognitive legitimacy constraint from competitors and customers in the startup and growth phases. Conformance strategy is the most commonly used one to overcome the regulative legitimacy constraint and normative legitimacy constraint from government, competitors and the public in the mature phase. Due to dynamic of legitimacy and the heterogeneity of stakeholders’ legitimacy judgment, enterprises should adopt different legitimate strategies based on the different stakeholders at different phases.
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Daming Huang AU - Guopeng Xiang AU - Yueyi Xiang AU - Xingwu Luo PY - 2018/06 DA - 2018/06 TI - Analysis on the Mechanism of Improving Legitimization of Internet Companies -- From the Perspective of Stakeholders BT - Proceedings of the 2018 2nd International Conference on Education, Economics and Management Research (ICEEMR 2018) PB - Atlantis Press SP - 372 EP - 377 SN - 2352-5398 UR - https://doi.org/10.2991/iceemr-18.2018.85 DO - 10.2991/iceemr-18.2018.85 ID - Huang2018/06 ER -