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Signalling legitimacy for SMEs transition environments - the case of the Bulgarian IT Sector

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  • Ivanova, Olga
  • Castellano, Sylvaine

Abstract

This research looks at legitimacy challenges of SMEs evolving in transition environments. Facing lower visibility, higher institutional pressures and limited resources, SMEs experience stronger need to demonstrate their legitimacy, their adherence to the requirements of evaluating audiences. Two types of legitimacy are discussed – functional and relational – that better capture the legitimacy needs of SMEs in transitional contexts. Being multi-dimensional constructs, their dimensions are identified, and measurements are proposed and tested using the structural equation modelling technique. The model was tested on data from the Bulgarian IT sector.

Suggested Citation

  • Ivanova, Olga & Castellano, Sylvaine, 2012. "Signalling legitimacy for SMEs transition environments - the case of the Bulgarian IT Sector," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(4), pages 398-422.
    • Handle: RePEc:nms:joeems:doi_10.1688/1862-0019_jeems_2012_04_ivanova
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    File URL: https://www.nomos-elibrary.de/10.5771/0949-6181-2012-4-398
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    References listed on IDEAS

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    Cited by:

    1. Olga Ivanova Ruffo & Kamel Mnisri & Christine Morin-Esteves & Corinne Gendron, 2020. "Judgements of SMEs’ Legitimacy and Its Sources," Journal of Business Ethics, Springer, vol. 165(3), pages 395-410, September.
    2. Zhang, Jianhong & Jiang, Jiangang & Noorderhaven, Niels, 2019. "Is certification an effective legitimacy strategy for foreign firms in emerging markets?," International Business Review, Elsevier, vol. 28(2), pages 252-267.
    3. Scuotto, V & Nicotra, M. & Del Giudice, M. & Krueger, N. & Gregori, G.L., 2021. "A microfoundational perspective on SMEs’ growth in the digital transformation era," Journal of Business Research, Elsevier, vol. 129(C), pages 382-392.
    4. Jianhong Zhang & David L. Deephouse & Désirée van Gorp & Haico Ebbers, 2022. "Individuals’ Perceptions of the Legitimacy of Emerging Market Multinationals: Ethical Foundations and Construct Validation," Journal of Business Ethics, Springer, vol. 176(4), pages 801-825, April.

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    More about this item

    Keywords

    signalling theory; organisational legitimacy; transition environments; SMEs;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General

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