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Toward a Theory of Social Risk

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  • MICHAEL YAZIJI

Abstract

This paper introduces the concept of normative delegitimation--the process by which an organization's normative legitimacy is diminished through challenges by outside organizations. I frame the phenomenon as a unique form of firm exposure, social risk--exposure to possible loss or constraints on strategic choice resulting from normative delegitimation challenges by external organizations. Using the context of social movement organizations' normative delegitimation challenges of firm behavior, I put forward propositions concerning firm, institutional, and socioeconomic antecedents that drive social risk. After this analysis, I consider extensions to the theory--particularly in terms of interorganizational dynamic processes and the strategic management of social risk.

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  • Michael Yaziji, 2004. "Toward a Theory of Social Risk," International Studies of Management & Organization, Taylor & Francis Journals, vol. 34(4), pages 87-107, January.
    • Handle: RePEc:taf:mimoxx:v:34:y:2004:i:4:p:87-107
    DOI: 10.1080/00208825.2004.11043716
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    Cited by:

    1. Deligonul, Seyda Z., 2020. "Multinational country risk: Exposure to asset holding risk and operating risk in international business," Journal of World Business, Elsevier, vol. 55(2).

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