No abstract

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.. Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academy of Management Review.We examine organizational legitimacy in the context of the multinational enterprise (MNE). After discussing three types of complexity (of the legitimating environment, the organization, and the process of legitimation) that MNEs typically face, we explore their effects on MNE legitimacy. In particular, we distinguish between the legitimacy of the MNE as a whole and that of its parts, and we develop propositions that include issues of internal versus external legitimacy and positive and negative legitimacy spillovers.

We examine organizational legitimacy in the context oi the multinational enterprise (MNE). Aiter discussing three types oi complexity (oi the legitimating environment, the organization, and the process oi legitimation) that MNEs typically face, we explore their eiiects on MNE legitimacy. In particular, we distinguish between the legitimacy of the MNE as a whole and that oi its parts, and we develop propositions that include issues of internal versus external legitimacy and positive and negative legitimacy spillovers.

No abstract

We study the impact of ‘foreignness’ on survival in interbank currency trading worldwide over the period 1974–93. In particular, we develop hypotheses on the behavior of the liability of foreignness over time, and on the consequences of evolving sources of firm‐level competitive advantage on this liability. We test these hypotheses on the population of 2667 market‐making trading rooms located in 47 countries worldwide that either existed in 1974 or entered the industry between 1974 and 1993. The results show that there is a liability of foreignness, and that it changes over time. Further, strategic and organizational factors such as the adoption of technology by these firms and their mode of internal control significantly influenced survival, as did location‐related factors such as the intensity of local and foreign competition. © 1997 by John Wiley & Sons, Ltd.