AFAM Biennial Conference, 5TH BIENNIAL CONFERENCE - Nigeria 2020

Font Size: 
Legitimacy and distinctiveness of Nigerian-Canadian transnational firms
Diane A Isabelle, Mika Westerlund, Victoria Sajuyigbe

Last modified: 2019-07-22

Abstract


Building legitimacy is a major challenge facing transnational entrepreneurs. Yet, overcoming the liability of foreignness and becoming legitimate are crucial for survival and growth.Hence, new transnationals must use convincing claims to gain stakeholder support. However, our knowledge is sparse on how entrepreneurs use claims to build legitimate distinctiveness. We examine the websites of 20 Nigerian-Canadian transnationals using two sets of data: 1) claims collected from Nigerian-Canadian transnationals’ websites and classified by argument types, and 2) survey of a 20-member review panel that assessed the selected websites. We used a quantitative approach consisting of ranking, clustering and regression analysis. We found a positive correlation between legitimacy and distinctiveness, indicative of the importance of both dimensions for transnationals. We contribute to the legitimate distinctiveness and transnational literatures, and provide managerial recommendations for transnational entrepreneurs, not only from Nigeria but more broadly, to guide the construction of legitimate and distinct claims.


References


Albert, S., & Whetten, D. A. (1985). Organizational identity. Research in Organizational Behavior, 7, 263–295.

Aldrich, H. (1999). Organizations evolving. London: Sage Publications.

Aldrich, H. E., & Fiol, C. M. (1994). Fools rush in? The institutional context of industry creation. Academy of Management Review, 19(4), 645-670.

Austin, R. D., & Darby, C. A. (2003). The myth of secure computing. Harvard Business Review, 81(6), 120-126.

Bacic, H. (2013). How to let web design drive your marketing strategy?AllBusiness. Retrieved from https://www.forbes.com/sites/allbusiness/2013/11/20/how-to-let-web-design-drive-your-marketing-strategy/#68306972448b

Berente, N., Hansen, S., Pike, J. C., & Bateman, P. J. (2011). Arguing the value of virtual

worlds: patterns of discursive sensemaking of an innovative technology. MIS Quarterly, 35, 685–709.

Bhide, A. (2000). The origin and evolution of new businesses.New York: Oxford University Press.

Bitektine, A. (2011). Toward a theory of social judgments of organizations: The case of legitimacy, reputation, and status. Academy of Management Review, 36(1), 151-179.

Blank, S. (2013). Why the lean start-up changes everything. Harvard Business Review,

91(5), 63–72.

Bouwmeester, O. (2013). Field dependency of argumentation rationality in decision-making debates. Journal of Management Inquiry, 22(4),415–433.

Brockriede, W., & Ehninger, D. (1960). Toulmin on argument: an interpretation and application. Quarterly Journal of Speech,46(1), 44–53.

Brzozowski, J., Cucculelli, M., & Surdej, A. (2017). The determinants of transnational entrepreneurship and transnational ties' dynamics among immigrant entrepreneurs in ICT sector in Italy.  International Migration, 55(3), 105-125.

Carayannopoulos, S. (2009). How technology-based new firms leverage newness and smallness to commercialize disruptive technologies.Entrepreneurship Theory and Practice,33(2), 419–438.

Carlos, V. S., & Rodrigues, R. G. (2012). Web site quality evaluation in Higher Education Institutions. Procedia Technology5, 273–282.

Chandler, A. D. (1962). Strategy and structure: Chapters in the history of the American enterprise. Cambridge,MA: Massachusetts Institute of Technology.

Chen, W., & Tan, J. (2009). Understanding Transnational Entrepreneurship rough a Network Lens: Theoretical and Methodological Considerations. Entrepreneurship Theory and Practice,33(5), 1079-1091.

Clydesdale, G. (2008). Business immigrants and the entrepreneurial nexus. Journal of International Entrepreneurship, 6(3), 123–142.

Dana, L. P. (1993). An Inquiry into Culture and Entrepreneurship: Case Studies of Business Creation Among Immigrants in Montreal. Journal of Small Business & Entrepreneurship, 10(4), 16–31.

David, M. E., David, F. R., & David, F. R. (2014). Mission statement theory and practice: A content analysis and new direction. International Journal of Business, Marketing and Decision Sciences, 7(1), 95-110.

De Clerq, D., & Voronov, M. (2011). Sustainability in entrepreneurship: a tale of two logics. International Small Business Journal,29(4), 322–344.

Deephouse, D. L. (1999). To be different, or to be the same? It's a question (and theory) of strategic balance. Strategic Management Journal,20(2), 147–166.

Deephouse, D. L., & Carter, S. M. (2005). An examination of differences between organizational legitimacy and organizational reputation. Journal of Management Studies, 42(2), 329-360.

Deephouse, D. L., & Suchman, M. C. (2008). Legitimacy in organizational institutionalism. In R. Greenwood, C. Oliver, K. Sahlin, & R. Suddaby (Eds.), The SAGE handbook of organizational institutionalism (pp. 44-77).Oxford UK: Sage.

Deephouse, D. L., Bundy, J., Tost, L. P., & Suchman, M. C. (2016). Organizational legitimacy: six key questions. Alberta School of Business Research, July 2016, 1-41.

Dheer, R. J. S. (2018). Entrepreneurship by immigrants: a review of existing literature and directions for future research. International Entrepreneurship and Management Journal, 14(3), 555–614.

DiMaggio, P., &  Powell W.W. (1983). The iron cage revisited: Collective rationality and institutional isomorphism in organizational fields. American Sociological Review, 48(2), 147-160.

Drori, I., Honig, B., & Wright, M. (2009). Transnational Entrepreneurship: An Emergent Field of Study. Entrepreneurship Theory and Practice, 33(5), 1001-1022.

Elsbach, K. D. (1994). Managing organizational legitimacy in the California cattle industry: The construction and effectiveness of verbal accounts. Administrative Science Quarterly, 39(1), 57–88.

Export Development Canada (EDC), (2019). Nigeria. Retrieved from https://www.edc.ca/en/country-info/country/nigeria.html

Fisher, G., Kotha, S., & Lahiri, A. (2016). Changing with the times: An integrated view of identity, legitimacy, and new venture life cycles. Academy of Management Review, 41(3), 383-409.

Fisher, G., Kuratko, D. F., Bloodgood, J. M., & Hornsby, J. S. (2017). Legitimate to whom? The challenge of audience diversity and new venture legitimacy. Journal of Business Venturing, 32(1), 52–71.

Fraiberg, S. (2017). Start-Up Nation: Studying Transnational Entrepreneurial Practices in Israel’s Start-Up Ecosystem. Journal of Business and Technical Communication, 31(3), 350-388.

Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge: Cambridge University Press.

Gangadhar, N., & Manahor, B. M. (2015). Understanding transnational entrepreneurship. International Journal of Advances in Management and Economics, 4(6), 52–67.

Goktan, A. B., & Flores, I. B. (2014). The Role of National Culture in the Transnational Entrepreneurship Process. Journal of Business and Entrepreneurship, 25(2), 75.

Garud, R., Schildt, H. A., & Lant, T. K. (2014). Entrepreneurial storytelling, future expectations, and the paradox of legitimacy. Organization Science,25(5), 1479–1492.

Gioia, D. A., Schultz, M., & Corley, K. G. (2000). Organizational identity, image, and adaptive instability. Academy of Management Review, 25(5), 63–81.

Gioia, D. A., Patvardhan, S. D., Hamilton, A. L., & Corley, K. G. (2013). Organizational identity formation and change. Academy of Management Annals, 7(1), 123-193.

Glynn, M. A., & Watkiss, L. (2012). Exploring cultural mechanisms of organizational identity construction. In M. Schultz, S. Maguire, A. Langley, & H. Tsoukas (Eds.), Constructing identity in and around organizations(pp. 63-88). New York: Oxford University Press.

Government of Canada (GOC), (2018). Immigrating to or investing in Canada to start a business. Retrieved from https://canadabusiness.ca/starting/before-starting-your-business/is-entrepreneurship-for-you/immigrating-to-or-investing-in-canada-to-start-a-business/

Government of Canada (GOC), (2019). Immigrate through Express Entry. Retrieved from https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/express-entry.html

Hannan, M. T., & Freeman, J. (1989). Organizational ecology. Cambridge, MA: Harvard University Press.

Hasan, L., & Abulerub, B. (2011). Assessing the quality of web sites. Applied Computing and Informatics, 9(1), 11-29.

Hasan, L. (2014). The usefulness of user testing methods in identifying problems on university websites. Journal of Information Systems and Technology Management, 11(2), 229-256.

Head, K., & Ries, J. (1998). Immigration and Trade Creation: Econometric Evidence from Canada. The Canadian Journal of Economics [Revue canadienne d’Economique],31(1), 47–62.

Henn, S. (2012). Transnational Entrepreneurs, Global Pipelines and Shifting Production Patterns: example of the Palanpuris in the Diamond Sector. In: Geoforum, 43(3): 497-506.

Immigration, Refugee and Citizenship Canada (IRCC), (2018). Permanent residents admitted in 2017, by top 10 source countries. Retrieved from https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/annual-report-parliament-immigration-2018/permanent-residents-admitted.html

Ireland, R.D., & Hitt, M.A., & Sirmon, D.G. (2003). A model of strategic entrepreneurship: The construct and its dimensions. Journal of Management, 29(6), 963-989.

Jack, G., & Lorbiecki, A. (2007). National identity, globalization and the discursive construction of organizational identity. British Journal of Management, 18(1), 79 – 95.

Jancenelle, V. E., Javalgi, R. R. G., & Cavusgil, E. (In press). Cultural entrepreneurship and legitimate distinctiveness in international prosocial crowdfunding. International Business Review.

Jawahar, I., & McLaughlin, G. L. (2001). Toward a descriptive stakeholder theory: An organizational life cycle approach. Academy of Management Review, 26(3), 397–414.

Jennings, J. E., Jennings, P. D., & Greenwood, R. (2009). Novelty and new firm performance: the case of employment systems in knowledge-intensive service organizations. Journal of Business Venturing,24(4), 338–359.

Jonsson, S., Greve, H. R., & Fujiwara-Greve, T. (2009). Underserved loss: The spread of legitimacy loss to innocent organizations in response to reported corporate deviance. Administrative Science Quarterly, 54(2), 195–228.

Kazanjian, R. K. (1988). Relation of dominant problems to stages of growth in technology-based new ventures. Academy of Management Journal, 31(2), 257–279.

King, B. G., & Whetten, D. A. (2008). Rethinking the relationship between reputation and legitimacy: a social actor conceptualization.Corporate Reputation Review,11(3), 192–207.

Kuratko, D. F., Brown, T. J. (2010). Emerging life sciences ventures: The quest for legitimacy. Business Horizons, 53: 211–220.

LaBianca, G., Fairbank, J. F., Thomas, J. B., Gioia, D. A., & Umphress, E. (2001). Emulation in academia: Balancing structure and identity. Organization Science, 12(3), 312–330.

Liu, Y. (2017). Born global firms’ growth and collaborative entry mode: the role of transnational entrepreneurs. International Marketing Review, 34(1), 46-67.

Lin, X., & Tao, S. (2012). Transnational Entrepreneurs: Characteristics, Drivers, and Success Factors. Journal of International Entrepreneurship, 10(1), 50-69.

Lounsbury, M., & Glynn, M. A. (2001). Cultural entrepreneurship: stories, legitimacy, and the acquisition of resources. Strategic Management Journal,22(6-7), 545–564.

Lundberg, H. & Rehnfors, A. (2018). Transnational entrepreneurship: opportunity identification and venture creation. Journal of International Entrepreneurship, 16(2), 150–175.

Maas, M. (2005). Transnational Entrepreneurship: Exploring Determinants and Impacts of a Dutch-based Filipino Immigrant Business. Asian and Pacific Migration Journal, 14(1-2), 169-191.

Martens, M. L., Jennings, J. E., & Jennings, P. D. (2007). Do the stories they tell get them the money they need? The role of entrepreneurial narratives in resource acquisition. Academy of Management Journal, 50(5), 1107–1132.

McNamara, G., Deephouse, D., & Luce, R.A. (2003). Competitive positioning within and across a strategic group structure: the performance of core, secondary, and solitary firms. Strategic Management Journal, 24(2), 161–181.

McKnight, B., & Zietsma, C. (2018). Finding the threshold: A configurational approach to optimal distinctiveness. Journal of Business Venturing, 33(4), 493-512.

Moghaddam, K., Rustambekov, E., Weber, T., & Azarpanah, S. (2018). Transnational entrepreneurship, social networks, and institutional distance: Toward a theoretical framework. New England Journal of Entrepreneurship, 21(1), 45-64.

Morawska, E. (2004). Immigrant transnational entrepreneurs in New York: Three varieties and their correlates. International Journal of Entrepreneurial Behavior & Research, 10(5), 325-348.

Nalevanko, C. (2017). Measuring Organizational Legitimacy in Social Media. Business and management ink. Sage Publishing. Retrieved from https://managementink.wordpress.com/2017/02/21/measuring-organizational-legitimacy-in-social-media/

Navis, C., & Glynn, M. A. (2011). Legitimate distinctiveness and the entrepreneurial identity: influence on investor judgments of new venture plausibility. Academy of Management Review,36(3), 479–499.

Nkrumah, A. (2018). Immigrants’ Transnational Entrepreneurial Activities: the Case of Ghanaian Immigrants in Canada. Journal of International Migration and Integration, 19(1), 195–211.

Norman, P. M., Artz, K. W., & Martinez, R. J. (2007). Does it pay to be different? Competitive non-conformity under different regulatory regimes.Journal of Business Research,60(11), 1135–1143.

Olson, M., & Olson, M. (2009). The logic of collective action: Public goods and the theory of groups.Cambridge,MA: Harvard University Press.

Packalen, K. A. (2007). Complementing capital: The role of status, demographic features and social capital in founder teams' abilities to obtain resources. Entrepreneurship Theory and Practice,31(6), 873–891.

Patel, P. C. & Conklin, B. (2009). The Balancing Act: The Role of Transnational Habitus and Social Networks in Balancing Transnational Entrepreneurial Activities. Entrepreneurship Theory and Practice, 33(5), 1045-1078.

Perelman, C. (2008). The Realm of Rhetoric, (1st ed.).University of Notre Dame Press, Notre Dame.

Pollack, J. M., Rutherford, M. W., & Nagy, B. G., (2012). Preparedness and cognitive legitimacy as antecedents of new venture funding in televised business pitches.Entrepreneurship Theory and Practice, 36(5), 915-939.

Pollock, T. G., & Rindova, V. P. (2003). Media legitimation effects in the market for initial public offerings. Academy of Management Journal, 46(5), 631–642.

Portes, A., Haller, W., & Guarnizo, L. (2002). Transnational entrepreneurs: an alternative form of immigrant economic adaptation. American Sociological Review,67(2), 278–298.

Radulov, K., & Shymanskyi, O. (2014): Transnational Entrepreneurs: Implications of the Dual Background on Opportunity Recognition: A Case Study of Transnational Entrepreneurs in the Skane Region,Lund: Lund University.

Rajasekar, J. (2013). A Comparative Analysis of Mission Statement Content and Readability. Journal of Management Policy and Practice, 14(6), 131-147.

Riddle, L., Hrivnak, G. A., & Nielsen, T. M. (2010). Transnational diaspora entrepreneurship in emerging markets: Bridging institutional divides. Journal of International Management, 16(4), 398–411.

Rieke, R. D., & Sillars, M. O. (2001). Argumentation and Critical Decision Making, (Fifth ed.).Longman, New York.

Ries, E. (2011). The lean startup: How today’s entrepreneurs use continuous innovation to create radically successful businesses.New York: Crown Business.

Rogerson, J. M., & Mushawemhuka, W. J. (2015). Transnational entrepreneurship in the Global South: evidence from Southern Africa. Bulletin of Geography. Socio-economic Series,30(30), 135-146.

Santamaria-Alvarez, S. M., Muñoz-Castro, D. C., Sarmiento-González, M. A., & Marín-Zapata, S. I. (2018). Fragmented networks and transnational entrepreneurship: Building strategies to prosper in challenging surroundings. Journal of International Entrepreneurship, 16(2), 244–275.

Santamaria-Alvarez, S. M., Sarmiento-González, M. A., & Arango-Vieira, L.C. (forthcoming). Transnational migrant entrepreneur characteristics and the transnational business nexus: The Colombian case. International Journal of Entrepreneurial Behavior & Research. DOI: 10.1108/IJEBR-02-2018-0092

Sequeira, J. M., Carr, J. C. & Rasheed, A. A. (2017). Transnational Entrepreneurship: Determinants of Firm Type and Owner Attributions of Success. Entrepreneurship Theory and Practice, 33(5), 1023-1044.

Shepherd, D. A. & Zacharakis, A. (2003). A new venture’s cognitive legitimacy: An assessment by customers. Journal of Small Business Management, 41(2), 148–167.

Singh, J. V., Tucker, D. J., & House, R. J. (1986). Organizational legitimacy and the liability of newness. Administrative Science Quarterly, 31, 171-193.

Sommer, E. & Gamper, M. (2018). Transnational entrepreneurial activities: A qualitative network study of self-employed migrants from the former Soviet Union in Germany. Social Networks, 53, 136–147.

Statistics Canada (2018). Research Blog: Immigrant entrepreneurs in Canada. Retrieved from https://www.statcan.gc.ca/eng/blog/cs/immigrant-entrepreneurs

Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610.

Tan, J., Shao, Y., & Li, W. (2013). To be different, or to be the same? An exploratory study of isomorphism in the cluster. Journal of Business Venturing,28(1), 83–97.

Terjesen, S. & Elam, A. (2009). Transnational Entrepreneurs’ Venture Internationalization Strategies: A Practice Theory Approach. Entrepreneurship Theory and Practice, 33(5), 1093-1120.

Tornikowski, E. T., & Newbert, S. L. (2007). Exploring the determinants of organizational emergence: a legitimacy perspective. Journal of Business Venturing., 22(2), 311–335.

Toulmin, S. (1994). The Uses of Argument.Cambridge University Press: Cambridge.

Überbacher, F. (2014). Legitimation of new ventures: A review and research programme. Journal of Management Studies, 51(4), 667-698.

Urbano, D., Toledano, N., & Ribeiro-Soriano, D. (2011). Socio-Cultural Factors and Transnational Entrepreneurship: A Multiple Case Study of Spain: International Small Business Journal,29(2),119-134.

van Werven, R., Bouwmeester, O., & Cornelissen, J.P. (2015). The power of arguments: How entrepreneurs convince stakeholders of the legitimate distinctiveness of their ventures. Journal of Business Venturing, 30(4), 616-631.

Vereb. V. N., &Ferreira, J. J. (2018). Transnational Entrepreneurship as a Win-Win Scenario of International Knowledge Spillover. Journal of the Knowledge Economy, 9(2), 446–472.

Wang, Y. S., Tang, T. I., & Tang, J. T. E., (2001). An instrument for measuring customer satisfaction toward web sites that market digital products and services. Journal of Electronic Commerce Research, 2(1), 89-102.

Weber, M. 1978. Economy and society: an outline of interpretive sociology.Berkeley, CA: University of California Press.

Westerlund, M., Isabelle, D. A., Rajala, R., & Leminen, S. (2017). Networks, business models, and competitiveness in small Finnish firms. International Journal of Business and Globalisation, 18(1), 9–26.

Wong, L. (2003). Chinese Business Migration to Australia, Canada and the United States: State Policy and the Global Immigration Marketplace. Asian and Pacific Migration Journal, 12(3), 301–336.

Wong, L., & Primecz, H. (2011). Chinese Migrant Entrepreneurs in Budapest: Changing Entrepreneurial Effects and Forms.Journal of Asia Business Studies,5(1), 61–76.

Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management journal, 38(2), 341-363.

Zamparini, A., & Lurati, F. (2017). Being different and being the same: Multimodal image projection strategies for a legitimate distinctive identity. Strategic Organization, 15(1), 6-39.

Zhao, E. Y., Fisher, G., Lounsbury, M., & Miller, D. (2017). Optimal distinctiveness: Broadening the interface between institutional theory and strategic management. Strategic Management Journal, 38(1), 93-113.


Conference registration is required in order to view papers.