Dynamics and Constraints of the Start-Up Legitimation Process: The Role Of Organizational Identification

Journal of Developmental Entrepreneurship. 2024. Vol. 29. No. 1. Article 2450001.

Emilia Karpinskaia, Shirokova G., Manolova T.

From inception, start-ups are torn between two opposing legitimacy pressures: the need to differen-tiate from competitors and the need to conform to stakeholders’ expectations. In this study, we adopt an  organizational  identification  perspective,  coupled  with  a  legitimacy-seeking  lens,  to  explore  the  start-up  legitimation  progress  for  entrepreneurs  who  identify  with  their  ventures  either  intrinsically  or instrumentally. Applying a longitudinal multi-case study design and using rich interview data, we track  the  decisions  and  actions  of  ten  Russian  high-tech  start-ups  over  a  twenty-month  period.  Our  findings reveal that start-up legitimation is a dynamic process guided by the organizational identifica-tion of the founders and bounded by identity tensions. The study extends the literature on new venture legitimation and its constraints. Theoretical and practitioner implications are discussed.

Keywords: organizational identification, Case-study, start-up legitimation, optimal distinctiveness