The Strength Of Relationship And Legitimacy

If it wants to survive and develop for a long time, a company needs not only toimprove production efficiency, product quality and continuous improvement ofmanagement model but also to get support and recognition of the public, governmentagencies, regulatory authority and partners, which is to obtain legitimacy from outside.It is called legitimation strategy for a company to take strategic behavior to acquirelegitimacy. A company will get through creation period, early growth period andmaturity period in its development process. It has different features in differentperiods, so it is crucial to develop appropriate legitimation strategies according todifferent periods. Prior to this, it is basis of right legitimation strategy to clear whatkind of legitimacy should be most improved to get the best performance. Therefore,this paper takes the first step to explore the kind of legitimacy which should be mostimproved in different stages of development. As the network of relationship can helpto get critical resource and recognition from government and professional sectors, itplays an important role in diferrent stages of development. So, this article will alsomake an in-depth study on relation network of company. Among them, therelationships between enterprises are divided into market relations and governmentrelations. Market relation is a type of transaction relation formed between suppliers,distributors, partners, competitors and consumers; government relation refers to theconnection between government, approval department, regulatory department,professional certification department and so on.This paper consists of five chapters. The first two chapters are general section,which comb theories of legitimacy of the enterprise, enterprise development stage andthe strength of the relationship, forming this research background, theoretical basisand writing ideas by comparing and absorbing different opinions. Chapter3and Chapter4are the core chapters. Chapter3defines and classifies the stages ofdevelopment and the legitimacy of the enterprise. On this basis, it makes a research onlegitimacy in different stages of development (including the creation, early growthstage and maturity stage) and also makes empirical research; Chapter4defines andclassifies the strength of the relationship and makes in-depth analysis on the effect onthe legitimacy on the basis of Chapter3, also an empirical study made. It should benoted that the empirical studies in Chapter3and Chapter4are efficiently designed byusing of high reliability degree of the scale, taking the questionnaire survey method toobtain a large number of empirical data and using SPSS18.0software for statisticalanalysis. Then the proposed theoretical assumptions have been tested. The fifthchapter is the concluding part of this article. First, the conclusions of this study aredescribed. Second, combined with previous research, the questions involved will bediscussed. Finally, the innovation of this paper, theoretical contributions, limitationsand directions for future research will be put forward, summarizing the full text.Following are the final conclusions of this paper:(1) In the creation period, a company should most be committed to cognitivelegitimacy, while the strength of the market relationship has a significant positiveimpact on cognitive legitimacy and the strength of the government relationship is nota key aspect.(2) In early growth period, companies are committed to regulation legitimacy toimprove the performance. At the same time, the strength of market relation andgovernment relation both has a significant positive impact on cognitive legitimacy.(3) In the maturity period, the company is committed to obtaining normativelegitimacy that is the most significant factor to improve performance. Simultaneously,the strength of the market relationship have a significant positive impact on cognitivelegitimacy, yet the strength of government relation has little impact.The article finally draws a conclusion, discussing the theoretical and practicalcontributions. Meanwhile, it points out the shortage of this article and the futureresearch direction. This paper not only provides guidance for the legalization strategy,but also has a certain reference value for government policy.