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Breaking the wave: The contested legitimation of an alien organizational form

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  • Giuseppe Delmestri

    (Department of Business Administration, Bergamo University, Italy)

  • Filippo Carlo Wezel

    (1] Institute of Management, Faculty of Economics, University of Lugano, Switzerland[2] CentER, Tilburg University, The Netherlands)

Abstract

Organizational forms imbued with values of modernity – that is, rationality, efficiency and equity – diffuse rapidly around the world. Nonetheless, when sustained by beliefs, norms and regulations contrasting with those prevalent in the receiving country, their adoption may be delayed, and within-country legitimation may not proceed smoothly. We study the diffusion of multiplex cinemas – a form conceived in the US and attuned to the cinema-as-commerce logic – across Europe, where the cinema-as-art logic prevails. Our findings reveal that the cultural meanings embodied by multiplexes shaped the founding rates of this organizational form in three ways. First, countries with larger normative and regulative distance from the US retarded the adoption of the first multiplex. Second, camouflaged entries and, at increasing density, opposition from local interest groups were observed. Third, the embodiment of global cultural scripts of progress and modernity allowed multiplexes to overcome local opposition. The normative distance of the country from the US amplified the fluctuating dynamics of within-country legitimacy. A new specification of density-dependent legitimation is presented to model the cultural-cognitive legitimacy of rationalized but alien organizational forms.

Suggested Citation

  • Giuseppe Delmestri & Filippo Carlo Wezel, 2011. "Breaking the wave: The contested legitimation of an alien organizational form," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(6), pages 828-852, August.
  • Handle: RePEc:pal:jintbs:v:42:y:2011:i:6:p:828-852
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    Citations

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    Cited by:

    1. Tina C Ambos & Sebastian H Fuchs & Alexander Zimmermann, 2020. "Managing interrelated tensions in headquarters–subsidiary relationships: The case of a multinational hybrid organization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(6), pages 906-932, August.
    2. Innan Sasaki & Niina Nummela & Davide Ravasi, 2021. "Managing cultural specificity and cultural embeddedness when internationalizing: Cultural strategies of Japanese craft firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(2), pages 245-281, March.
    3. Aranda Gutierrez, Ana, 2016. "Thank you for (not) smoking : Essays on organizational theory and strategy in a contested industry," Other publications TiSEM ec7e4803-0702-496c-8b36-8, Tilburg University, School of Economics and Management.
    4. Meichen Dong & Jie Jiao & Jun Xia, 2022. "Consequences of homophily: does social status similarity enhance project performance?," Asian Business & Management, Palgrave Macmillan, vol. 21(1), pages 58-81, February.
    5. Stephanie Lu Wang & Qian Gu & Mary Ann Glinow & Paul Hirsch, 2020. "Cultural industries in international business research: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 665-692, June.
    6. Martin, Xavier, 2013. "Solving theoretical and empirical conundrums in international strategy research by matching foreign entry mode choices and performance," Other publications TiSEM 7645ea46-0b9a-4fc0-ae33-a, Tilburg University, School of Economics and Management.
    7. Julia Balogun & Kathryn Fahy & Eero Vaara, 2019. "The interplay between HQ legitimation and subsidiary legitimacy judgments in HQ relocation: A social psychological approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 223-249, March.
    8. Johann Fortwengel, 2021. "The formation of an MNE identity over the course of internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1069-1095, August.

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