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Industrial Illegitimacy and Negative Externalities: the Case of the Illinois Livestock Industry

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  • Pereira, Filipe
  • Goldsmith, Peter D.

Abstract

An industry's legitimacy depends on stakeholders' perceptions and assessments of the appropriateness of its behavior across a wide array of settings. While products and services may be highly valued, and in some cases essential, business externalities serve as a powerful counterforce undermining legitimacy. The work draws on the theory of industrial legitimacy and employs a taxonomy of four different legitimacy sub components; pragmatic, regulative, normative, and cognitive. The paper identifies how externalities affect an industry's legitimacy and the relative contribution of each sub component. The research then empirically tests the theory using the case of the Illinois livestock industry.

Suggested Citation

  • Pereira, Filipe & Goldsmith, Peter D., 2006. "Industrial Illegitimacy and Negative Externalities: the Case of the Illinois Livestock Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21125, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21125
    DOI: 10.22004/ag.econ.21125
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    References listed on IDEAS

    as
    1. Goldsmith, Peter D. & Wang, Miao, 2012. "The Economic Impact of Illinois’s Livestock Industry," ACE Reports 181596, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    2. Blake E. Ashforth & Barrie W. Gibbs, 1990. "The Double-Edge of Organizational Legitimation," Organization Science, INFORMS, vol. 1(2), pages 177-194, May.
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    Keywords

    Livestock Production/Industries;

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