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

Dorothee Baumann-Pauly (), Andreas Georg Scherer () and Guido Palazzo ()
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Dorothee Baumann-Pauly: NYU Stern School of Business
Andreas Georg Scherer: University of Zurich
Guido Palazzo: University of Lausanne

Journal of Business Ethics, 2016, vol. 137, issue 1, No 3, 51 pages

Abstract: Abstract 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.

Keywords: Globalization; Legitimacy; Institutional complexity; Paradox; Corporate social responsibility (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (14)

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DOI: 10.1007/s10551-014-2532-x

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