A Study On The Relationship Between Organizational Legitimacy And New Venture Performance

Stinchcombe (1965) put forward the New Venture had liability of newness andmight be the reason that the mortality rate was higher than the entrepreneurs whichhad been existed. House, Tucker&Singh (1986) found that external legitimacy ratherthan the factors of internal coordination process constituted the more main reason ofliability of newness and the high mortality rate of New Venture. Zimmerman&Zeitz(2002) pointed out that legitimacy was not only the foundation to overcome liabilityof newness and got the survival, but also the important path for New venture’sdevelopment, and put forward New Venture which had crossed the threshold oflegitimacy can survival and development, which would introduce legitimacy to theresearch about the uniqueness growth of enterprise.Though the legitimacy had the important influence to business success and thesurvival and development of New Venture,the research to the organizationallegitimacy was still in the initial stage.The relationship of the basic concepts and basichypothesis which between the legitimacy and entrepreneurship researches were stilllack depth discussion. There was a little study about the relationship between theorganization legitimacy and New Venture performance in previous research, andlegitimacy was always been used as a middle variable to study the relationshipbetween some concepts and New Venture performance,and the mature measuringmethod of legitimacy was still lacked nowadays.Firstly,this paper defined the key concept and the division of dimensions on thebasis of the literature review about organizational legitimacy and New Ventureperformance. Secondly,we would construct the theoretical model between theorganizational legitimacy and New Venture performance,and put forward12researchhypotheses of article.Then we had validated research hypotheses would prove that theorganizational legitimacy had significant positive correlation to New Ventureperformance and its dimensions, the dimensions of the organizational legality hadpartly notable effect to New Venture performance and its dimensions.Finally, we putforward the limitations of this study and the future direction of the research bysummarizing the article.