The Study Of Enterprise Borrow-utilize Legitimacy For Unpublicized Strategic Action

In order to gain competitive advantage under a complex institutional environment, the study of enterprise legitimacy has been deepening and widening. Corporate legitimacy has two edges, it restricts business, meanwhile to bring competitive advantage. The reality of enterprises legitimating unpublicized strategic behavior, we tend to see that the firm will borrow some legitimacy to gain understanding. Our paper is focusing on this phenomenon to explore the mechanism.On the basis of legitimacy concept, we build a legitimacy system. And we apply this framework to analyze two real cases. Then from the analysis process, we find two dimensions to dive the borrow-utilize into four types. Then we use other more cases to explain these four types. Through this research thought, the main conclusions of this study are as follows:Firstly, legitimacy system includes six elements, they are named evaluator, evaluated object, evaluation criteria, evaluation environment, assessment procedures and evaluation results.Secondly, we use borrowing object (sub-system or impact) and results (changing structure or not) to divide the borrow-utilize action to four types, they are replacement, implantable, elements increasing under external factors, elements changing under external factors.Thirdly, replacement and implantable types are more suitable under regulation system unclear or even blank, and the later two types are better for strong personal relationship circumstance.Fourthly, we apply psychological theory to find that elements'homogeneity, similarity and transfer are helpful for borrow-utilize action' success.Fifthly, we will evaluate the action from three aspects, they are the degree of legitimacy, cost-benefit and risk assessment.