IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v46y2025i5p3087-3105.html

Legitimacy Building in Entrepreneurial Ecosystems—A Process Perspective for Sustainable Entrepreneurs

Author

Listed:
  • Felix Toepler
  • Vivek Velamuri

Abstract

The integration of legitimacy in entrepreneurial ecosystem theory is under‐researched, resulting in scholarly vagueness about how entrepreneurs acquire resources. Our qualitative study with 31 (co‐)founders of startups following the triple bottom line investigates entrepreneurs' daily practices for building legitimacy in entrepreneurial ecosystems. We identify that entrepreneurs follow a sequential process to build legitimacy: 1) engaging and assimilating with culture, 2) establishing and utilizing networks, 3) enhancing visibility, and 4) leveraging the sustainable mission. Following this sequential process builds different levels of legitimacy. Each level grants access to resources from the entrepreneurial ecosystem. We contribute to the scholarly conversation on legitimacy in entrepreneurial ecosystems and provide practical implications for entrepreneurs.

Suggested Citation

  • Felix Toepler & Vivek Velamuri, 2025. "Legitimacy Building in Entrepreneurial Ecosystems—A Process Perspective for Sustainable Entrepreneurs," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(5), pages 3087-3105, July.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:5:p:3087-3105
    DOI: 10.1002/mde.4518
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.4518
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.4518?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
    ---><---

    References listed on IDEAS

    as
    1. Philippe Monin & Eero Vaara, 2010. "A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions," Post-Print hal-02312439, HAL.
    2. Shi, Xianwei & Shi, Yongjiang, 2022. "Unpacking the process of resource allocation within an entrepreneurial ecosystem," Research Policy, Elsevier, vol. 51(9).
    3. Franz Kellermanns & Jorge Walter & T. Russell Crook & Benedict Kemmerer & Vadake Narayanan, 2016. "The Resource‐Based View in Entrepreneurship: A Content‐Analytical Comparison of Researchers' and Entrepreneurs' Views," Journal of Small Business Management, Taylor & Francis Journals, vol. 54(1), pages 26-48, January.
    4. David Audretsch & Colin Mason & Morgan P. Miles & Allan O’Connor, 2021. "Time and the dynamics of entrepreneurial ecosystems," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 33(1-2), pages 1-14, January.
    5. Jarillo, J. Carlos, 1989. "Entrepreneurship and growth: the strategic use of external resources," Journal of Business Venturing, Elsevier, vol. 4(2), pages 133-147, March.
    6. Christina Theodoraki & Karim Messeghem, 2017. "Exploring the entrepreneurial ecosystem in the field of entrepreneurial support: a multi-level approach," Post-Print hal-02279520, HAL.
    7. Theodoraki, Christina & Dana, Léo-Paul & Caputo, Andrea, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Journal of Business Research, Elsevier, vol. 140(C), pages 346-360.
    8. Kathrin Bischoff & Christine K. Volkmann, 2018. "Stakeholder support for sustainable entrepreneurship - a framework of sustainable entrepreneurial ecosystems," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 10(2), pages 172-201.
    9. Arthur, W Brian, 1994. "Inductive Reasoning and Bounded Rationality," American Economic Review, American Economic Association, vol. 84(2), pages 406-411, May.
    10. Elisa Villani & Christian Lechner, 2021. "How to acquire legitimacy and become a player in a regional innovation ecosystem? The case of a young university," The Journal of Technology Transfer, Springer, vol. 46(4), pages 1017-1045, August.
    11. Dean A. Shepherd & Andrew Zacharakis, 2003. "A New Venture's Cognitive Legitimacy: An Assessment by Customers," Journal of Small Business Management, Taylor & Francis Journals, vol. 41(2), pages 148-167, April.
    12. Christina Theodoraki & Léo-Paul Dana & Andrea Caputo, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Post-Print hal-04676716, HAL.
    13. Christina Theodoraki & Karim Messeghem, 2017. "Exploring the entrepreneurial ecosystem in the field of entrepreneurial support: a multi-level approach," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 31(1), pages 47-66.
    14. W. Brian Arthur, 1994. "Inductive Reasoning, Bounded Rationality and the Bar Problem," Working Papers 94-03-014, Santa Fe Institute.
    15. Neil A. Thompson & Karen Verduijn & William B. Gartner, 2020. "Entrepreneurship-as-practice: grounding contemporary theories of practice into entrepreneurship studies," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(3-4), pages 247-256, March.
    16. Eero Vaara & Philippe Monin, 2010. "A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions," Organization Science, INFORMS, vol. 21(1), pages 3-22, February.
    17. Elco Van Burg & Joep Cornelissen & Wouter Stam & Sarah Jack, 2022. "Advancing Qualitative Entrepreneurship Research: Leveraging Methodological Plurality for Achieving Scholarly Impact," Entrepreneurship Theory and Practice, , vol. 46(1), pages 3-20, January.
    18. Vershinina, Natalia & Rodgers, Peter & Tarba, Shlomo & Khan, Zaheer & Stokes, Peter, 2020. "Gaining legitimacy through proactive stakeholder management: The experiences of high-tech women entrepreneurs in Russia," Journal of Business Research, Elsevier, vol. 119(C), pages 111-121.
    19. Michael Lounsbury & Mary Ann Glynn, 2001. "Cultural entrepreneurship: stories, legitimacy, and the acquisition of resources," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 545-564, June.
    Full references (including those not matched with items on IDEAS)

    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. Giovanni Negri & Giacomo Ciambotti & Christina Theodoraki & David Littlewood, 2025. "Stagnating or flourishing? How entrepreneurial support organizations navigate constraints in nascent ecosystems," Small Business Economics, Springer, vol. 65(3), pages 1651-1679, October.
    2. Nana, André & Laviolette, Eric Michaël & Theodoraki, Christina, 2026. "Preincubation practices as sourcing in entrepreneurial ecosystems: A dynamic capability perspective," Journal of Business Research, Elsevier, vol. 203(C).
    3. Meena Chavan & Francesco Chirico & Muhammad Aftab Alam & Christina Theodoraki, 2024. "A Grounded Model of How Refugee Family Businesses Build Entrepreneurial Ecosystems," Post-Print hal-04677628, HAL.
    4. Aveline Cloitre & Christina Theodoraki & Victor Dos Santos Paulino, 2026. "Entrepreneurial support organizations in sustainable knowledge-driven ecosystems," The Journal of Technology Transfer, Springer, vol. 51(1), pages 319-343, February.
    5. Jantos, Louisa & Bäumle, Philipp & Feser, Daniel, 2024. "Removing barriers for sustainability: A qualitative cross-country analysis of entrepreneurial ecosystem attributes in Israel and Germany," ifh Working Papers 44/2024, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    6. Éva Komlósi & Marcus Dejardin & László Szerb & Balázs Páger, 2025. "Is a balanced entrepreneurial ecosystem essential for success? A configurational analysis of European regional entrepreneurial ecosystems," The Journal of Technology Transfer, Springer, vol. 50(4), pages 1669-1708, August.
    7. Patrick Gregori & Erich Schwarz & Patrick Holzmann, 2025. "Agencing entrepreneurial ecosystems for sustainability: A systematic review to rethink values, transformation, and boundaries," Small Business Economics, Springer, vol. 65(3), pages 1755-1790, October.
    8. Alejandro Almeida & Antonio A. Golpe & Juan Manuel Martín-Álvarez & Jose Carlos Vides, 2025. "New England’s Pinnacle: fostering quality entrepreneurial ecosystems," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(1), pages 243-271, March.
    9. Reis, Germano Glufke & Villar, Eduardo Guedes & Prado Gimenez, Fernando Antonio & Maiolino Molento, Carla Forte & Ferri, Priscila, 2022. "The interplay of entrepreneurial ecosystems and global value chains: Insights from the cultivated meat entrepreneurial ecosystem of Singapore," Technology in Society, Elsevier, vol. 71(C).
    10. Syed Ali Adnan Rizvi & Giulio Buciuni & Paul Ryan, 2025. "Multinational enterprise spillover mechanisms in the genesis and evolution of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 65(3), pages 1681-1700, October.
    11. Makaya, Christian & Blanco, Cristina & Barrédy, Céline, 2023. "Towards an ecological approach for interaction management in entrepreneurship courses," Journal of Business Research, Elsevier, vol. 160(C).
    12. Ruebottom, Trish, 2013. "The microstructures of rhetorical strategy in social entrepreneurship: Building legitimacy through heroes and villains," Journal of Business Venturing, Elsevier, vol. 28(1), pages 98-116.
    13. Lamotte, Olivier, 2025. "Close but not nearby? Rethinking proximity in the digital era of entrepreneurial ecosystems," Journal of Business Venturing Insights, Elsevier, vol. 23(C).
    14. Aaron Defort & Michael Fröhlich & Paul Neuroth & Isabell Welpe, 2025. "How do successful exits impact regional development? Longitudinal evidence from European cities," Small Business Economics, Springer, vol. 65(3), pages 1571-1593, October.
    15. Joep P. Cornelissen & Rodolphe Durand & Peer Fiss & John C. Lammers & Eero Vaara, 2015. "Putting Communication Front and Center in Institutional Theory and Analysis," Post-Print hal-02276731, HAL.
    16. Sophia Hess & Andreas Wahl & Alan R. Johnson, 2025. "Measuring entrepreneurial ecosystems across levels: a district approach," Small Business Economics, Springer, vol. 65(3), pages 1617-1649, October.
    17. Sonia S. Siraz & Björn Claes & Julio O. De Castro & Eero Vaara, 2023. "Theorizing the Grey Area between Legitimacy and Illegitimacy," Journal of Management Studies, Wiley Blackwell, vol. 60(4), pages 924-962, June.
    18. Theodoraki, Christina & Dana, Léo-Paul & Caputo, Andrea, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Journal of Business Research, Elsevier, vol. 140(C), pages 346-360.
    19. Susanne Pankov & Vivek K. Velamuri & Dirk Schneckenberg, 2021. "Towards sustainable entrepreneurial ecosystems: examining the effect of contextual factors on sustainable entrepreneurial activities in the sharing economy," Small Business Economics, Springer, vol. 56(3), pages 1073-1095, February.
    20. Tyler Wry & Michael Lounsbury & Mary Ann Glynn, 2011. "Legitimating Nascent Collective Identities: Coordinating Cultural Entrepreneurship," Organization Science, INFORMS, vol. 22(2), pages 449-463, April.

    More about this item

    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:wly:mgtdec:v:46:y:2025:i:5:p:3087-3105. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.