Influence Path Research:How Institution Conflict Effect The Legitimacy Of Company

The new institution theory emphasizes legitimacy. Surviving in the institutional environment, if enterprises want to get a better development, in pay attention to efficiency, the enterprise must deal with the legitimacy and legitimacy management at the same time. In the process of economic transformation, the government agency is the carrier of the functions of the government, and the institutional subject in institutional environment still occupies an important position. Since1990th, although government agencies downsized, function overlapping between institutional subjects was still too serious. This paper summarizes the types and characters of institutional conflicts upon which the study is carried and meanwhile tries to explore what strategies are reasonable and effective or not by case studies; and also proposes the proper types of legitimacy-gaining strategies which firms can choose to avoid these kinds of institutional conflicts.First, this paper reviews the institutional subjects’function intersections involved in3cases which are about approval authority for WOW, ownership of electric bicycle which exceeds the standard, the integration broadcasting right of Internet TV; second, from the characters of institutional conflicts created by function intersections, finds the presence and the dynamics, the interest relevance and elasticity of institutional conflicts, and also finds the main effects on firms’legitimacy management engendered by four factors of the other stakeholders; then, classifies the institutional conflicts effected by four factors and analyses each character of institutional conflicts; at last, proposes the reasonable and effective legitimacy management mechanism according to the different types of the institutional conflicts under which the firms could adopt different strategies to gain legitimacy when fall into the institutional conflicts.