Organizational Legitimacy And The Rise And Fall Of Internet Companies From The Perspective Of New Institutionalis

With the development of my country’s Internet industry,batches of Internet companies have emerged in line with the tide of the times.Some of them have found the right time to expand their business and become stronger,but some companies have declined due to various reasons.With the introduction of the national "Internet+" action and the strategy of strengthening the country through the Internet,many Internet companies have entered the manufacturing field from the Internet field and began to conduct cross-border operations.Le TV is a representative cross-border Internet company.As my country’s first "profitable" listed video company,its market value exceeded 100 billion yuan in 2015,and then it was unable to repay its arrears in2020 due to lack of funds and management chaos.delisted.Since its establishment,Le TV has gone through 18 years of rapid development and rapid decline.During this period,the technological environment and the institutional environment jointly affect the decision-making and destiny of the enterprise.This paper takes Le as the research object,and from the perspective of the institutional environment,explores whether the legal status of Internet companies has an impact on the rise and fall of enterprises,and what is the impact mechanism.This research uses a combination of case studies and content analysis to explore the development of Le TV.By going back to the history of Le Eco’s development,this article divides Le Eco’s development into a rapid development stage from 2004 to2016 and a gradual decline stage from 2016 to the present.The study found that in the stage of rapid development,various elements of the country,the market and society have a positive attitude towards the development of Le Eco.During this period,the state promulgated various policies to promote the development of the Internet industry,which provided a relatively relaxed environment for the development of Internet companies.Le TV obtained capital support by catering to the market evaluation mechanism and conducted cross-border operations,and used various marketing methods to obtain capital support.widespread social concern.As a result,Le Eco gained the support of regulatory legitimacy,normative legitimacy,and cognitive legitimacy,and rapidly prospered.In the stage of gradual decline,since the news of the breakage of the capital chain in 2016 was exposed,Le TV has been questioned by suppliers,investors,partners and the China Securities Regulatory Commission.behavior,thereby losing normative legitimacy,cognitive legitimacy and regulatory legitimacy,and eventually decline.This paper believes that the research on this issue has important research significance.In previous researches,there is not much discussion on the rise and fall of Internet companies in the academic circle,and there are also few studies on the rise and fall of organizations with organizational legitimacy.The topic selection of this research is innovative to a certain extent.In addition,most of the current research on the rise and fall of Le Eco focuses on the role of the technological environment,arguing that the shortage of funds is the cause of Le Eco’s decline.However,this study found that in the case of a long-term lack of funds,Le Eco completed the listing and obtained a 10-year golden development period,so it is believed that such views cannot fully explain the rise and fall of Le Eco.Based on this,this paper introduces the perspective of neo-institutionalism,and believes that the rise and fall of enterprises not only involves the efficiency mechanism,but also the participation of the legitimacy mechanism.The funding problem may be the direct reason for the decline of LeEco,but the loss of organizational legitimacy caused by the funding problem was known to the outside world is also an important reason for the decline of enterprises.To a certain extent,this broadens the scope of theoretical explanation and enriches the scenarios of theoretical application,which can supplement the viewpoints of existing research,and will also trigger the reflection of the securities market,the media and enterprises,and promote the healthy development of Internet enterprises.