IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v43y2008i4p385-399.html
   My bibliography  Save this article

Private firms in China: Building legitimacy in an emerging economy

Author

Listed:
  • Ahlstrom, David
  • Bruton, Garry D.
  • Yeh, Kuang S.

Abstract

Firms are legitimized by their environments if they survive and prosper. But firms can also proactively build legitimacy to enhance their long-term growth prospects. This is vital for private firms based on emerging economies given the weak protection for private property. This article examines ways in which private firms in China build legitimacy for themselves and their industries. Through field interviews with firm founders and top managers in China various legitimization strategies and the conditions under which they can be used are examined. The authors also conducted follow-up interviews in Taiwan to investigate legitimacy-building strategies there. Though more advanced, Taiwan's economy shares many cultural traditions with Mainland China, and it presents firms with similar legitimacy-related challenges. Interviews with managers of multinationals operating in China were also conducted to determine what they are learning from the legitimization strategies of the indigenous Chinese firms.

Suggested Citation

  • Ahlstrom, David & Bruton, Garry D. & Yeh, Kuang S., 2008. "Private firms in China: Building legitimacy in an emerging economy," Journal of World Business, Elsevier, vol. 43(4), pages 385-399, October.
  • Handle: RePEc:eee:worbus:v:43:y:2008:i:4:p:385-399
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951608000035
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ed Clark, 1999. "The Adoption of the Multi-divisional Form in Large Czech Enterprises: The Role of Economic, Institutional and Strategic Factors," Journal of Management Studies, Wiley Blackwell, vol. 36(4), pages 535-559, July.
    2. Chong-En Bai & Jiangyong Lu & Zhigang Tao, 2006. "The Multitask Theory of State Enterprise Reform: Empirical Evidence from China," American Economic Review, American Economic Association, vol. 96(2), pages 353-357, May.
    3. Ahlstrom, David & Bruton, Garry D. & Lui, Steven S. Y., 2000. "Navigating China's changing economy: Strategies for private firms," Business Horizons, Elsevier, vol. 43(1), pages 5-15.
    4. Hisrich, Robert D. & Grachev, Mikhail V., 1993. "The Russian entrepreneur," Journal of Business Venturing, Elsevier, vol. 8(6), pages 487-497, November.
    5. Mike Wright & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    6. Mike Peng & Jessie Zhou, 2005. "How Network Strategies and Institutional Transitions Evolve in Asia," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 321-336, December.
    7. Kumar, Rajesh & Rangan, U. Srinivasa & RufĂ­n, Carlos, 2005. "Negotiating complexity and legitimacy in independent power project development," Journal of World Business, Elsevier, vol. 40(3), pages 302-320, August.
    Full references (including those not matched with items on IDEAS)

    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:worbus:v:43:y:2008:i:4:p:385-399. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.