The acquisition of new venture's legitimacy and choice of entry strategy in emerging markets

Abstract

New venture, endogenous vigour of the country's economic development, has been the focus of the study researchers. However, new venture's mortality is much higher than old enterprises, one important reason of which is the lack of organizational legitimacy in Institutionalism's opinion. Legitimacy derives from the socialized institutional structure, and is one important resource which can help the new venture approach and mobilize other resources. Especially for the new venture in emerging economies, because of uncertainty of its institutional environment, it is more difficult to gain the legitimacy. Therefore, how to conduct effective strategies to obtain the organizational legitimacy is the key of its rapid growth.