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Determining When A New Venture Is Legitimate: A Changepoint Analysis Of Social Media Rhetoric

Author

Listed:
  • A. Jno-Charles
  • R. Raja Singaram
  • M. Radu-Lefebvre

    (Audencia Business School)

  • W. B. Gartner

Abstract

Despite the advances in scholarship on legitimation strategies, measuring the threshold for when new ventures attain legitimacy has remained elusive. We developed three theory-based linguistic markers for legitimation. Using these markers, we analyzed the social media rhetoric of 105 startups in the wearables sector that succeeded in their crowdfunding efforts on Kickstrater.com. Our dataset includes 21,687 social media posts from Twitter and Facebook collected in a time-matched pattern corresponding to crowdfunding funding progress. Using a novel technique for analyzing longitudinal text, we detect when new ventures cross their legitimacy threshold. Also, we find that startups reduce legitimacy-seeking behavior on social media only after reaching 135% to 180% of their originally desired funding. The implications of our results for new venture legitimacy literature are discussed. We show that the analytical method developed here can be applied to study a variety of constructs in entrepreneurship at different venture stages.

Suggested Citation

  • A. Jno-Charles & R. Raja Singaram & M. Radu-Lefebvre & W. B. Gartner, 2025. "Determining When A New Venture Is Legitimate: A Changepoint Analysis Of Social Media Rhetoric," Post-Print hal-05369326, HAL.
    • Handle: RePEc:hal:journl:hal-05369326
    DOI: 10.1080/00472778.2024.2437550
    Note: View the original document on HAL open archive server: https://hal.science/hal-05369326v1
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