The Effect Of Legitimation Strategy For Internet Companies

In China’s transitional economy, it is not enough that enterprise pursue the business performance and effectiveness. Also, enterprise needs to be considered to have the legitimacy, which enterprise should be accepted from its stakeholders, such as competitors, suppliers, the public, employees, customers, government and other stakeholders. Furthermore, In China’s transitional economy, the development of Chinese enterprises is both an opportunity and a challenge, which organizational legitimacy play in barrier role more. In the legitimacy driven-mechanism, enterprise implements legitimation strategies for gaining business development key resources, promoting enterprises’ growth in scale and performance.This dissertation combines the multiple case studies into content analysis, time series analysis and scenario analysis methods and select four internet companies, the giant network, JingDong Mall, Tencent and Baidu as samples of the multiple cases studies. By distinguishing form of legitimacy and business life cycle, identifying key stakeholders of legitimacy constraints and implementing legitimation strategies, it can be formed into the effect of Internet Company for gaining the legitimacy.The results show that:First, the legalization of Internet Company is divided into two types, including completing type and pioneering type; Second, the Internet enterprises in the transitional economies of the corporate life cycle stages can be divided into start-up, growth and maturity; Third, completing type Internet Company mainly confronts constraint of regulation in the start-up and growth period, so that it leads to competitors for the key stakeholders; and also mainly confronts constraint of regulation in the maturity period, so that it leads to the government for the key stakeholders. Pioneering type Internet Company respectively mainly confronts constraint of cognition, constraint of regulation and constraint of normative in the three different stages, so that it respectively leads to the public, competitors and the public for the key stakeholders in the three different stages. Four, completing type Internet Company have implemented conforming strategy in the start-up and maturity period, and manipulating strategy in the growth period.; pioneering type Internet Company have implemented creating strategy in the start-up period, and have implemented conforming strategy in the growth and maturity period.This paper, integrating with stakeholder theory, study the effect of gaining organizational legitimate, based on view of strategy. In addition, it is beneficial to enrich the existing theories and add up emerging countries such as China theoretical application scenarios. Finally, it concludes the model of the effect of Internet Company for gaining the legitimacy.