Authors: Romeo V. Turcan
Addresses: Department of Business and Management, Aalborg University, Fibigerstræde 2, Aalborg, 9220, Denmark
Abstract: This paper explores within the framework of new venture legitimation how and why international new ventures acquire external legitimacy and strive for survival in the face of critical events. Following a longitudinal multiple-case study methodology that was adopted for the purpose of theory building, the paper introduces the typology of captivity, and the four types that have emerged: captive industry supplier, captive dyadic partner, captive market leader, and free market leader. The effects of captivity types on the acquisition of external legitimacy and its survival, on reaching legitimacy threshold, and on the valuation of the venture are discussed and respective propositions are put forward to guide future research.
Keywords: external legitimacy; legitimation strategies; international new ventures; typologies; theory building; new business ventures; captivity types; survival; critical events; longitudinal methodologies; multiple case studies; captive suppliers; industry suppliers; captive partners; dyadic partners; captive leaders; market leaders; free markets; legitimacy thresholds; valuation; small and medium-sized enterprises; SMEs; entrepreneurs; international entrepreneurship; internationalisation.
International Journal of Entrepreneurship and Small Business, 2012 Vol.15 No.2, pp.262 - 283
Available online: 31 Jan 2012 *Full-text access for editors Access for subscribers Purchase this article Comment on this article