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Organizational Legitimacy and the Strategic Bridging Ability of Green Alliances

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  • Kalim U. Shah

Abstract

Alliances with environmental non‐governmental organizations may benefit multinational corporations (MNCs) operating in developing countries where uncertain socio‐cultural and institutional conditions present higher investment risks. Such ‘green alliances’ can provide strategic bridging services by interceding between MNCs and distant, yet important, stakeholders. From an institutional perspective, strategic bridging success may depend on stakeholder perceptions of alliance legitimacy. In this study the relationship between alliance legitimacy and strategic bridging ability is explored through the case of the Turtle Village Trust in Trinidad and Tobago. Findings suggest that bridging success occurs when organizational legitimacy peaks; that new alliance partners temporarily weaken legitimacy; and bridging with every new targeted stakeholder requires continued acquisition of legitimacy based on their respective values. MNC decisions to form alliances that bridge targeted stakeholders on their behalf should therefore consider the potential of the alliance to acquire and accumulate organizational legitimacy without which strategic bridging efforts may be futile. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

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  • Kalim U. Shah, 2011. "Organizational Legitimacy and the Strategic Bridging Ability of Green Alliances," Business Strategy and the Environment, Wiley Blackwell, vol. 20(8), pages 498-511, December.
    • Handle: RePEc:bla:bstrat:v:20:y:2011:i:8:p:498-511
    DOI: 10.1002/bse.706
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    2. Belén Payán‐Sánchez & Miguel Pérez‐Valls & José Antonio Plaza‐Úbeda & Diego Vázquez‐Brust, 2022. "Network ambidexterity and environmental performance: Code‐sharing in the airline industry," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1169-1183, March.
    3. Scott R. Colwell & Ashwin W. Joshi, 2013. "Corporate Ecological Responsiveness: Antecedent Effects of Institutional Pressure and Top Management Commitment and Their Impact on Organizational Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 22(2), pages 73-91, February.
    4. Uwafiokun Idemudia, 2017. "Environmental Business–NGO Partnerships in Nigeria: Issues and Prospects," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 265-276, February.
    5. Andrew Ngawenja Mzembe, 2016. "Doing Stakeholder Engagement Their own Way: Experience from the Malawian Mining Industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(1), pages 1-14, January.
    6. Marano, Valentina & Tashman, Pete, 2012. "MNE/NGO partnerships and the legitimacy of the firm," International Business Review, Elsevier, vol. 21(6), pages 1122-1130.
    7. John Dinwoodie & Sarah Tuck & Harriet Knowles & James Benhin & Mark Sansom, 2012. "Sustainable Development of Maritime Operations in Ports," Business Strategy and the Environment, Wiley Blackwell, vol. 21(2), pages 111-126, February.
    8. Ince, David & Vredenburg, Harrie & Liu, Xiaoyu, 2016. "Drivers and inhibitors of renewable energy: A qualitative and quantitative study of the Caribbean," Energy Policy, Elsevier, vol. 98(C), pages 700-712.
    9. Hadi Al-Abrrow & Jaber Ali & Alhamzah Alnoor, 2022. "Multilevel Influence of Routine Redesigning, Legitimacy and Functional Affordance on Sustainability Accounting: Mediating Role of Organizational Sense-making," Global Business Review, International Management Institute, vol. 23(2), pages 287-312, April.
    10. H. L. Zou & R. C. Zeng & S. X. Zeng & Jonathan J. Shi, 2015. "How Do Environmental Violation Events Harm Corporate Reputation?," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 836-854, December.
    11. Peter Seele & Lucia Gatti, 2017. "Greenwashing Revisited: In Search of a Typology and Accusation‐Based Definition Incorporating Legitimacy Strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 239-252, February.
    12. Andrew Peterman & Arno Kourula & Raymond Levitt, 2020. "Organizational roles in a sustainability alliance network," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3314-3330, December.
    13. Matthew Walker & Haylee Mercado, 2016. "Environmentally Responsible Value Orientations: Perspectives from Public Assembly Facility Managers," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(5), pages 271-282, September.

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