Study On Improving Ways Of Legitimacy Of International Contractors

With the continuous implementation of China's "Going Global” Strategy,foreign projects contracting is now under rapid development.Most of the international contractors realize the importance of indigenization.The fundamental goal of indigenization is to settle into the local environment,during which obtaining and enhancing legitimacy becomes an important subject to these companies.Therefore,deep study on the legitimacy in overseas market is of great significance for the international contractors.Base on legitimacy study,this thesis adopts case study method,and describes all details of six cases in five overseas projects from one Chinese international contractor by interviewing persons involved in these cases and analyzing projects' documents.Meanwhile,this thesis establishes a case analysis frame based on types of legitimacy and obtaining strategies,identifies the causes of these cases,impacts and improving ways of legitimacy,and presents the following findings: active concern and proper assist(giving action and manipulate strategy)to employees' families by Chinese companies,reciprocal behaviors(integration action and acquiesce strategy)between Chinese companies and local government or local residents,and conformation to the Employer's requirement(integration action and acquiesce strategy)on local human resources reserve by Chinese companies will improve potential stakeholders'(local employees,local residents and local government)recognition to values of Chinese companies and their normative legitimacy;cooperation behaviors(integration action and manipulate strategy)between Chinese companies and local government based on mutual benefits will build higher power for management of local employees(stakeholders),and improve local employees' recognition to values of Chinese companies;humanistic concern and motivation system(integration action and manipulate strategy)by Chinese companies upon local employees,settling into local manners and customs(giving action and acquiesce strategy),and publicity activities(integration action and manipulate strategy)by Chinese companies,will help guide the potential stakeholders(local residents)to accept the projects and adopt the values and behavior logic of Chinese companies,and improve cultural-cognitive legitimacy;Chinese companies' legitimacy is positively correlated with performance capabilities of local employees,in which loyalty of local employees has mediating effect.These findings are of positive significance to enhance legitimacy of international contractors and settle themselves into local environment.As the result comes from analyzation on six cases from a single international contractor,it shall be studied and verified by empirical test based on mass data.