Toward a Theory of Social Risk

Michael Yaziji

International Studies of Management & Organization, 2004, vol. 34, issue 4, 87-107

Abstract: This paper introduces the concept of normative delegitimation--the process by which an organization's normative legitimacy is diminished through challenges by outside organizations. I frame the phenomenon as a unique form of firm exposure, social risk--exposure to possible loss or constraints on strategic choice resulting from normative delegitimation challenges by external organizations. Using the context of social movement organizations' normative delegitimation challenges of firm behavior, I put forward propositions concerning firm, institutional, and socioeconomic antecedents that drive social risk. After this analysis, I consider extensions to the theory--particularly in terms of interorganizational dynamic processes and the strategic management of social risk.

Date: 2004
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DOI: 10.1080/00208825.2004.11043716

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