Signalling legitimacy for SMEs transition environments - the case of the Bulgarian IT Sector

Olga Ivanova Ruffo () and Sylvaine Castellano ()
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Olga Ivanova Ruffo: ICN Business School, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine
Sylvaine Castellano: ESG Management School - ESG Management School

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Abstract: This research looks at legitimacy challenges of SMEs evolving in transition environments. Facing lower visibility,higher institutional pressures and limited resources,SMEs experience stronger need to demonstrate their legitimacy,their adherence to the requirements of evaluating audiences. Two types of legitimacy are discussed - functional and relational - that better capture the legitimacy needs of SMEs in transitional contexts. Being multi-dimensional constructs,their dimensions are identified,and measurements are proposed and tested using the structural equation modelling technique. The model was tested on data from the Bulgarian IT sector.

Keywords: signalling theory; organisational legitimacy; transition environment; SMEs (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

Published in Journal for East European Management Studies, 2012, 17 (4), pp.398-422. ⟨10.5771/0949-6181-2012-4-398⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01514815

DOI: 10.5771/0949-6181-2012-4-398

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