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Legitimacy perceptions amid institutional pluralism: How hype over decoupled practices influences entrepreneurial ventures

Author

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  • Spivack, April J.
  • Lahti, Tom
  • Burström, Thommie
  • Wincent, Joakim

Abstract

Drawing on a qualitative case study of hype around an entrepreneurial venture, we develop a three-phase process model detailing how firm-level hype influences volatility in perceived legitimacy. We detail how hype over a new venture's practices, including coupling and decoupling, may boost legitimacy in the short term, but may also lead to long-term risks of accelerated legitimacy loss. Positively, hype amplifies excitement over new business models that may use decoupling to solve existing problems in new ways, thereby rapidly inflating perceived legitimacy. Negatively, hype triggers moral questioning, whistleblowing, and moral panicking over decoupled practices that contradict core institutional logics, thereby accelerating perceived legitimacy loss. We highlight the dynamism and intensity of hype's influence on perceived legitimacy and question the viability of decoupling as a long-term strategy for new ventures in contexts of institutional pluralism.

Suggested Citation

  • Spivack, April J. & Lahti, Tom & Burström, Thommie & Wincent, Joakim, 2025. "Legitimacy perceptions amid institutional pluralism: How hype over decoupled practices influences entrepreneurial ventures," Journal of Business Venturing, Elsevier, vol. 40(4).
    • Handle: RePEc:eee:jbvent:v:40:y:2025:i:4:s0883902625000333
    DOI: 10.1016/j.jbusvent.2025.106505
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