IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v54y2025i8s0048733325001167.html

Middle managers at the crossroads: Navigating legitimacy tensions in pursuit of radical innovation in nascent ecosystems

Author

Listed:
  • Ellis, S. James
  • Khanagha, Saeed
  • Aalbers, Rick
  • Tuertscher, Philipp

Abstract

To pursue radical innovation in emergent digital ecosystems, middle managers need to balance the often conflicting expectations and interests of internal and external stakeholders. Our longitudinal field study of Atos, a leading IT company, follows a team of middle managers aiming to collaborate with novel financial technology firms—so-called fintechs—to catalyze radical innovation. We explore how they navigated contradictory legitimacy issues arising from stakeholders both internal and external to the firm. In doing so, we outline how they adopted and adjusted a changing mix of legitimacy-seeking behavior over time to generate and sustain an array of radical innovations. Our findings show how legitimacy issues continuously evolve as middle managers embed their innovation efforts, driven by shifting stakeholder expectations, leading them to adjust their legitimacy-seeking approach. We contribute to the literature on collaborative innovation ecosystem strategies, emphasizing the central role of middle managers in connecting the internal organizational stakeholders to external ecosystem actors.

Suggested Citation

  • Ellis, S. James & Khanagha, Saeed & Aalbers, Rick & Tuertscher, Philipp, 2025. "Middle managers at the crossroads: Navigating legitimacy tensions in pursuit of radical innovation in nascent ecosystems," Research Policy, Elsevier, vol. 54(8).
    • Handle: RePEc:eee:respol:v:54:y:2025:i:8:s0048733325001167
    DOI: 10.1016/j.respol.2025.105287
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733325001167
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.respol.2025.105287?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Karl Taeuscher & Hannes Rothe, 2021. "Optimal distinctiveness in platform markets: Leveraging complementors as legitimacy buffers," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 435-461, February.
    2. Huang, Kenneth G. & Su, Yu-Shan & Chen, Jin & Kajikawa, Yuya, 2025. "Shaping the future through developing and managing breakthrough innovations: A new conceptual framework," Technological Forecasting and Social Change, Elsevier, vol. 214(C).
    3. Jane E. Dutton & Susan J. Ashford & Regina M. O’ Neill & Erika Hayes & Elizabeth E. Wierba, 1997. "Reading the wind: how middle managers assess the context for selling issues to top managers," Strategic Management Journal, Wiley Blackwell, vol. 18(5), pages 407-423, May.
    4. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    5. Kratochvil, Renate, 2025. "The process of framing innovation activities: How strategic leaders erode their ideas for radical innovations," Research Policy, Elsevier, vol. 54(1).
    6. Alva Taylor & Constance E. Helfat, 2009. "Organizational Linkages for Surviving Technological Change: Complementary Assets, Middle Management, and Ambidexterity," Organization Science, INFORMS, vol. 20(4), pages 718-739, August.
    7. Gautam Ahuja & Curba Morris Lampert, 2001. "Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 521-543, June.
    8. Foss, Nicolai J. & Mazzelli, Ambra, 2025. "Bringing managers and management back into strategy: Interfaces and dynamic managerial capabilities," Journal of Business Research, Elsevier, vol. 186(C).
    9. Robert A. Burgelman, 1991. "Intraorganizational Ecology of Strategy Making and Organizational Adaptation: Theory and Field Research," Organization Science, INFORMS, vol. 2(3), pages 239-262, August.
    10. Gianluigi Giustiziero & Tobias Kretschmer & Deepak Somaya & Brian Wu, 2023. "Hyperspecialization and hyperscaling: A resource‐based theory of the digital firm," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1391-1424, June.
    11. Brice Dattée & Oliver Alexy & Erkko Autio, 2018. "Maneuvering in Poor Visibility : How Firms Play the Ecosystem Game when Uncertainty is High," Post-Print hal-02276702, HAL.
    12. Anirvan Pant & J Ramachandran, 2017. "Navigating identity duality in multinational subsidiaries: A paradox lens on identity claims at Hindustan Unilever 1959–2015," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(6), pages 664-692, August.
    13. Eucman Lee & Phanish Puranam, 2016. "The implementation imperative: Why one should implement even imperfect strategies perfectly," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1529-1546, August.
    14. Gomes, Leonardo Augusto de Vasconcelos & Chaparro, Ximena Alejandra Flechas & Maniçoba, Rafaela Ferreira & Borini, Felipe Mendes & Silva, Lucas Emmanuel, 2025. "Transformation of the governance of failure for radical innovation: The role of strategic leaders," Research Policy, Elsevier, vol. 54(1).
    15. Saeed Khanagha & Shahzad (Shaz) Ansari & Sotirios Paroutis & Luciano Oviedo, 2022. "Mutualism and the dynamics of new platform creation: A study of Cisco and fog computing," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 476-506, March.
    16. Gustavo Birollo & Linda Rouleau & Carola Wolf, 2025. "Middle Managers’ Relational Dynamics in the Context of Acquisitions: Balancing Strategic Interdependence and Organizational Autonomy," Journal of Management Studies, Wiley Blackwell, vol. 62(2), pages 666-705, March.
    17. Ansari, Shahzad (Shaz) & Krop, Pieter, 2012. "Incumbent performance in the face of a radical innovation: Towards a framework for incumbent challenger dynamics," Research Policy, Elsevier, vol. 41(8), pages 1357-1374.
    18. Patrick Haack & Oliver Schilke & Lynne Zucker, 2021. "Legitimacy Revisited: Disentangling Propriety, Validity, and Consensus," Journal of Management Studies, Wiley Blackwell, vol. 58(3), pages 749-781, May.
    19. Danielle Logue & Matthew Grimes, 2022. "Platforms for the people: Enabling civic crowdfunding through the cultivation of institutional infrastructure," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 663-693, March.
    20. Michael G. Jacobides & Carmelo Cennamo & Annabelle Gawer, 2018. "Towards a theory of ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2255-2276, August.
    21. repec:hal:journl:hal-02312003 is not listed on IDEAS
    22. Henry Mintzberg, 1980. "Structure in 5's: A Synthesis of the Research on Organization Design," Management Science, INFORMS, vol. 26(3), pages 322-341, March.
    23. Eric W. Schoon, 2022. "Operationalizing Legitimacy," American Sociological Review, , vol. 87(3), pages 478-503, June.
    24. Goto, Masashi, 2023. "Anticipatory innovation of professional services: The case of auditing and artificial intelligence," Research Policy, Elsevier, vol. 52(8).
    25. Mariano L. M. Heyden & Sebastian P. L. Fourné & Bastiaan A. S. Koene & Renate Werkman & Shahzad (Shaz) Ansari, 2017. "Rethinking ‘Top‐Down’ and ‘Bottom‐Up’ Roles of Top and Middle Managers in Organizational Change: Implications for Employee Support," Journal of Management Studies, Wiley Blackwell, vol. 54(7), pages 961-985, November.
    26. Capponi, Giovanna & Martinelli, Arianna & Nuvolari, Alessandro, 2022. "Breakthrough innovations and where to find them," Research Policy, Elsevier, vol. 51(1).
    27. Yidi Guo & Quy Nguyen Huy & Zhixing Xiao, 2017. "How middle managers manage the political environment to achieve market goals: Insights from China's state‐owned enterprises," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 676-696, March.
    28. Diana L. Day, 1994. "Raising Radicals: Different Processes for Championing Innovative Corporate Ventures," Organization Science, INFORMS, vol. 5(2), pages 148-172, May.
    29. Linda Rouleau & Julia Balogun, 2011. "Middle Managers, Strategic Sensemaking, and Discursive Competence," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 953-983, July.
    30. Raghu Garud & Arun Kumaraswamy & Anna Roberts & Le Xu, 2022. "Liminal movement by digital platform‐based sharing economy ventures: The case of Uber Technologies," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 447-475, March.
    31. Trott, Paul & Simms, Chris, 2017. "An examination of product innovation in low- and medium-technology industries: Cases from the UK packaged food sector," Research Policy, Elsevier, vol. 46(3), pages 605-623.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhong, Yan & Wang, Ami & Aalbers, Rick & McCarthy, Killian J & Zhang, Ruling, 2025. "Keeping things cordial: Competition, cooperation and coopetition in venture capital syndicates," Journal of Business Research, Elsevier, vol. 201(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Louise Lindbjerg & Theodor Vladasel, 2021. "Hiring entrepreneurs for innovation," Economics Working Papers 1811, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Samir L. Vaz & Anneloes M. L. Raes & Mariano L. M. Heyden, 2022. "Realizing implementation through relational exchanges with top managers: the mediating role of middle managers’ divergent strategic behavior," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(1), pages 81-108, March.
    3. Thomas, Llewellyn D.W. & Snihur, Yuliya, 2025. "Ecosystem framing and infomediary resonance: Amazon’s early years (1995–2003)," Technovation, Elsevier, vol. 140(C).
    4. Pinar Ozcan & Douglas Hannah, 2020. "Social Origins of Great Strategies Advertising Suppliers to Realize Disruptive Social Media Technology," Strategy Science, INFORMS, vol. 5(3), pages 193-217, September.
    5. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    6. Tobias Kretschmer & Aija Leiponen & Melissa Schilling & Gurneeta Vasudeva, 2022. "Platform ecosystems as meta‐organizations: Implications for platform strategies," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 405-424, March.
    7. Shaikh, Ibrahim & Randhawa, Krithika, 2022. "Managing the risks and motivations of technology managers in open innovation: Bringing stakeholder-centric corporate governance into focus," Technovation, Elsevier, vol. 114(C).
    8. Maurer, Marcel & Bach, Norbert & Oertel, Simon, 2024. "Dealing with the downsides of new work: The reactions of middle managers to the decline in middle management," European Management Journal, Elsevier, vol. 42(3), pages 358-370.
    9. Hetemi, Ermal & Ritala, Paavo & Jerbrant, Anna, 2026. "Knowledge ecosystem emergence: Organizing participation, identity, and actorhood to bridge the governance void," Research Policy, Elsevier, vol. 55(1).
    10. Mariano L. M. Heyden & Sebastian P. L. Fourné & Bastiaan A. S. Koene & Renate Werkman & Shahzad (Shaz) Ansari, 2017. "Rethinking ‘Top‐Down’ and ‘Bottom‐Up’ Roles of Top and Middle Managers in Organizational Change: Implications for Employee Support," Journal of Management Studies, Wiley Blackwell, vol. 54(7), pages 961-985, November.
    11. Reischauer, Georg & Engelmann, Alexander & Gawer, Annabelle & Hoffmann, Werner H., 2024. "The slipstream strategy: How high-status OEMs coopete with platforms to maintain their digital extensions' edge," Research Policy, Elsevier, vol. 53(7).
    12. Josef Taalbi, 2022. "Long-run patterns in the discovery of the adjacent possible," Papers 2208.00907, arXiv.org, revised Dec 2023.
    13. Jan Frederic Nerbel & Markus Kreutzer, 2023. "Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.
    14. Thomas Schaefer & Thomas Guenther, 2016. "Exploring strategic planning outcomes: the influential role of top versus middle management participation," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(2), pages 205-249, May.
    15. Duan, Wenqi & Li, Chen, 2023. "Be alert to dangers: Collapse and avoidance strategies of platform ecosystems," Journal of Business Research, Elsevier, vol. 162(C).
    16. Carlos Martin-Rios, 2016. "Innovative management control systems in knowledge work: a middle manager perspective," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(2), pages 181-204, May.
    17. Elisabeth Yang & Julia DiBenigno, 2025. "Opportunistic Change During a Punctuation: How and When the Front Lines Can Drive Bursts of Incremental Change," Organization Science, INFORMS, vol. 36(1), pages 40-64, January.
    18. Spaniol, Matthew J. & Rowland, Nicholas J., 2022. "Business ecosystems and the view from the future: The use of corporate foresight by stakeholders of the Ro-Ro shipping ecosystem in the Baltic Sea Region," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    19. Kim, Yunkyoung & Jung, Hyun Ju, 2026. "When do ventures break path dependence? Evidence from financial and technological success of serial entrepreneurs," Technovation, Elsevier, vol. 149(C).
    20. Sirén, Charlotta & Kohtamäki, Marko, 2016. "Stretching strategic learning to the limit: The interaction between strategic planning and learning," Journal of Business Research, Elsevier, vol. 69(2), pages 653-663.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:54:y:2025:i:8:s0048733325001167. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.