Perspectives on new venture legitimation : a review and research agenda

Abstract

New venture legitimation has become an increasingly active topic of scholarly inquiry over the last two decades. Considering the lack of an up-to-date, wide-spectrum review on the issue, an integrative literature review is conducted to take stock of the current empirical and conceptual knowledge. The present study continues the work started by Überbacher (2014), and the classification developed in that review is now used to review scholarly output until February 2024.

The present study reviews 245 peer-reviewed journal articles published between 1985 and February 2024 on new venture legitimation. The articles are classified with the perspective typology developed by Überbacher (2014). Shifts in the structure and substance of the literature are analyzed by comparing periods 1985–2012 and 2013–2/2024, which is in alignment with the cutoff year of Überbacher’s review.

The findings illustrate a formidable, continuing expansion of the scholarly new venture legitimation literature. Most of the growth has stemmed from the burgeoning of empirical work, particularly over the last two decades. The most common type of study has been qualitative research with institutional theory as the theoretical framework. On the other hand, novel contributions based on organizational ecology have diminished. There has been only moderate activity in the conceptual proceedings on new venture legitimation, particularly towards the end of the period reviewed.

Based on the review, an updated research agenda is proposed. The avenues identified as potential for further inquiry are 1) developing a unified legitimation strategy framework, 2) reaching consensus on legitimacy thresholds, 3) conceptualizing liabilities on a general level, 4) theorizing performative new venture legitimation, 5) explicating the metaphysical foundations of organizational legitimacy, and 6) aiming at more interdisciplinary legitimacy research. These six research streams align with understudied aspects of new venture legitimation identified by the present study.