DYNAMICS AND CONSTRAINTS OF THE START-UP LEGITIMATION PROCESS: THE ROLE OF ORGANIZATIONAL IDENTIFICATION

Abstract

From inception, start-ups are torn between two opposing legitimacy pressures: the need to differentiate from competitors and the need to conform to stakeholders’ expectations. In this study, we adopt an organizational identification perspective, coupled with a legitimacy-seeking lens, to explore the start-up legitimation progress for entrepreneurs who identify with their ventures either intrinsically or instrumentally. Applying a longitudinal multi-case study design and using rich interview data, we track the decisions and actions of ten Russian high-tech start-ups over a twenty-month period. Our findings reveal that start-up legitimation is a dynamic process guided by the organizational identification of the founders and bounded by identity tensions. The study extends the literature on new venture legitimation and its constraints. Theoretical and practitioner implications are discussed.