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Organizational Legitimacy Under Conditions of Complexity: the Case of the Multinational Enterpris

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Organizational Legitimacy Under Conditions of Complexity: the Case of the Multinational Enterpris
Organizational Legitimacy under Conditions of Complexity: The Case of the Multinational
Enterprise
Author(s): Tatiana Kostova and Srilata Zaheer
Reviewed work(s):
Source: The Academy of Management Review, Vol. 24, No. 1 (Jan., 1999), pp. 64-81
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/259037 .
Accessed: 07/05/2012 03:36
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I Acadenmy of Management Review
8
1999, Vol. 24. No. 1, 641- 1.

U
L
ORGANIZATIONAL EGITIMACY NDER
T
CONDITIONSOF COMPLEXITY: HECASE OF
E
THEMULTINATIONALNTERPRISE
TATIANA KOSTOVA
University of South Carolina, Columbia
SRILATA ZAHEER
University of Minnesota
We examine organizational legitimacy in the context of the multinational enterprise
(MNE).After discussing three types of complexity (of the legitimating environment, the organization, and the process of legitimation) that MNEs typically face, we explore their effects on MNE legitimacy. In particular, we distinguish between the legitimacy of the MNE as a whole and that of its parts, and we develop propositions that include issues of internal versus external legitimacy and positive and negative legitimacy spillovers. It has become a growing industry to critique Nike globally (Phil Knight, NBC Today Show, May 11,
1998).

a whole or at its subunits? What constitutes the



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