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The Structure of Legitimization: Establishing Organizational Legitimacy While Applying Decision Making Rules

Legitimacy is perceived as an important building block of organizational theory. Over the years, researchers have tried to decipher the meaning of legitimacy in relation to organizational success and survival in various ways. This paper discusses the evolution of the theoretical and empirical use of the term "legitimacy" in organizational literature. Despite the intensive use of the term as a dependent and independent construct, we still know little about how legitimacy is granted, especially when the capabilities or values of an organization are ambiguous. The review focuses on possible dimensions or variant terms of legitimacy, as well as on the interrelationship or interdependency of the dimensions. The review leads to the presentation of a new hierarchical theoretical model for awarding legitimacy, based on decision-making theory and then suggests related propositions that combine the micro-level inspection to institutional process.