Managing Institutional Complexity: A Longitudinal Study of Legitimacy Strategies at a Sportswear Brand Company

Multinational corporations are operating in complex business environments. They are confronted with contradictory institutional demands that often represent mutually incompatible expectations of various audiences. Managing these demands poses new organizational challenges for the corporation. Conduc...

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Bibliographic Details
Authors: Baumann-Pauly, Dorothee (Author) ; Scherer, Andreas Georg (Author) ; Palazzo, Guido (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2016
In: Journal of business ethics
Year: 2016, Volume: 137, Issue: 1, Pages: 31-51
Further subjects:B Paradox
B Corporate social responsibility
B Institutional complexity
B Globalization
B Legitimacy
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Summary:Multinational corporations are operating in complex business environments. They are confronted with contradictory institutional demands that often represent mutually incompatible expectations of various audiences. Managing these demands poses new organizational challenges for the corporation. Conducting an empirical case study at the sportswear manufacturer Puma, we explore how multinational corporations respond to institutional complexity and what legitimacy strategies they employ to maintain their license to operate. We draw on the literature on institutional theory, contingency theory, and organizational paradoxes. The results of our qualitative longitudinal study show that managing corporate legitimacy is a dynamic process in which corporations adapt organizational capacities, structures, and procedures.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-014-2532-x