External legitimation in international new ventures: toward the typology of captivity
by Romeo V. Turcan
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 15, No. 2, 2012

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.

Online publication date: Tue, 31-Jan-2012

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