Media Legitimation Effects in the Market for Initial Public Offerings

Pollock, Timothy G.; Rindova, Violina P.

doi:10.5465/30040654

Cited by 348 publications

(581 citation statements)

References 41 publications

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“…After evaluating the results, the following propositions were made: a) institutionalized organizations with greater cognitive legitimacy are not related to greater resources; b) organizations with greater cognitive legitimacy have better organizational results. A study of the literature showed a link between overall organizational legitimacy and improved results and/or access to resources (Singh, Tucker, & House, 1986;Baum & Oliver, 1991;Hannan & Carroll, 1992;Pollock & Rindova, 2003;Rossoni & Machado-Da-Silva, 2013) but this relationship had not been sufficiently explored concerning cognitive legitimacy. In fact, most studies use other types of legitimacy (see Ruef & Scott, 1998;Bansal & Clelland, 2004;Cohen and Dean, 2005;Higgins & Gulati, 2003.…”

Section: Resultsmentioning

confidence: 99%

Cognitive Legitimacy, Resource Access, and Organizational Outcomes

Cruz-Suárez

Prado-Román

2014

Rev. adm. empres.

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Legitimidade cognitiva, acesso aos recursos e resultados organizacionais Legitimidad cognitiva, acceso a recursos, y resultados organizativos ABSTRACTPrevious research has demonstrated the importance of developing legitimacy initiatives in order to create new business opportunities, satisfy shareholders, and obtain access to resources. Within this framework, cognitive legitimacy plays a key role. Through a case study of six Spanish public universities, the authors measure the relationship between cognitive legitimacy, access to resources, and organizational results. The results support the assertion that organizations with more cognitive legitimacy have greater access to resources and improved their results. This study contributes with muchneeded empirical research on cognitive legitimacy and demonstrates its usefulness as an explanative factor of organizational success.KEYWORDS | Legitimacy, institutional theory, cognitive legitimacy, organizational results, resources acquisition. RESUMO Pesquisas prévias indicaram a importância de desenvolver iniciativas

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Section: Resultsmentioning

confidence: 99%

Cognitive Legitimacy, Resource Access, and Organizational Outcomes

Cruz-Suárez

Prado-Román

2014

Rev. adm. empres.

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“…The media provides a general overview of public interest in and knowledge of the sector. Prior studies conclude that the media can serve as an indicator of cognitive and normative legitimacy (Deephouse, 1996;Deephouse and Suchman, 2008;Dowling and Pfeffer, 1975;Hannan et al, 1995;Humphreys, 2010;Pollock and Rindova, 2003). While increased media coverage is not a guarantee of social acceptance, it is an indicator public knowledge and awareness (Aldrich and Fiol, 1994;Deephouse, 1996;Dobrev and Gostopoulos, 2010;Hannan et al, 1995) and what the public perceives to be important (Geels and Verhees, 2011).…”

Section: Methodsmentioning

confidence: 99%

The big bug: The legitimation of the edible insect sector in the Netherlands

2017

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“…These signals include contests (Rao, 1994), awards (Anand and Watson, 2004;Gemser, Leenders and Wijnberg, 2008) reviews (Basuroy, Chatterjee and Ravid, 2003;Eliashberg and Shugan, 1997), ratings (Podolny, 1993), and even the mere volume of media attention (Pollock and Rindova, 2003;Rindova, Petkova and Kotha, 2007).…”

Section: Reputation and Selectionmentioning

confidence: 99%

Nascent ventures competing for start-up capital: Matching reputations and investors

Ebbers

Wijnberg

2012

Journal of Business Venturing

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While earlier studies focused on the general effects of corporate or individual reputations on attracting investment capital, a major contribution of this study is to distinguish between different types of reputations and different types of investors, and then analyze how particular types of reputations have an effect on particular types of investors. We do this by applying selection system theory, which is an approach to understanding competitive processes by focusing on the identity of the decision makers whose evaluations determine the outcome of these competitive processes. The three basic types of selectors are: market selectors, peer selectors and expert selectors.This tripartite classification allows us to categorize types of reputations on the basis of their sources. First, if a reputation is based on success in consumer markets, for example (end-) consumers' quality perceptions of a specific brand of shampoo, it can be linked to market selection. Second, a reputation type can be linked to expert selection if it originates from expert judgments. An example is a credit rating agency 4 such as Moody's. Third, if the reputation is based upon success among peers, for example winning an award at the 'Oscars' where the jury largely consists of other filmmakers, it can be linked to peer selection.At the same time types of investors can be categorized by considering both the characteristics and the goals of the investors making the investment decisions. First, if investors back a venture because they primarily hope that many consumers will like and buy the product they can be identified as market selectors. Second, if investors are (industry) peers of the founding members of the new venture they can be identified as peer selectors. Third, if they are neither market nor peer selectors they can be categorized as expert selectors. This tripartite categorization opens the way to the main argument of this paper: nascent organizations will be more successful in attracting investment capital from an investor if their founding members have performance-based reputations of a type that matches the type of the investor.In the empirical section of this paper we test this argument by studying the impact of the reputations of producers and directors on the investment decisions of the three main investors in the Dutch film industry: distributors, television broadcasters and the Film Fund. We find support for our main theoretical argument, IntroductionAn adequate resource base (Brush, Greene, Hart and Haller, 1993;Davidson and Honig, 2003;Parker and van Praag, 2006), and especially adequate financing Earlier studies applied selection system theory to study competition in product markets. For example, how winning or being nominated for an award impacts box office revenues of mainstream or art-house films (Gemser et al., 2008). Employing selection system theory to better understand the financing stage further tests the usefulness of this framework and also extends the theory itself.Our empirical setting is the Dutch film industr...

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Media Legitimation Effects in the Market for Initial Public Offerings

Cited by 348 publications

References 41 publications

Cognitive Legitimacy, Resource Access, and Organizational Outcomes

Cognitive Legitimacy, Resource Access, and Organizational Outcomes

The big bug: The legitimation of the edible insect sector in the Netherlands

Nascent ventures competing for start-up capital: Matching reputations and investors

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