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

Author

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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, Rainer Hampp Verlag, vol. 17(4), pages 398-422.
    • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2012_04_ivanova
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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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