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Strategic Pathways for New Venture Legitimacy within the Entrepreneurial Ecosystem

Year: 2025

Type: article

Abstract: Understanding how new ventures establish legitimacy within entrepreneurial ecosystems (EEs) is crucial for fostering their growth and survival. Using data from 228 Finnish firms, we employ fuzzy-set qualitative comparative analysis to explore the configurations of strategic paths that (new) ventures adopt to establish legitimacy within the dynamic and resource-dependent environments of EEs. The results reveal different strategic configurations (solutions) for new ventures' passive and active legitimacy. The findings show that while conformance and selection are fundamental traditional strategies for gaining passive legitimacy, new ventures can still employ innovative strategies such as manipulation and selection. However, new ventures strictly employ innovative strategies (manipulation and creation) to gain active legitimacy. The study highlights the imperative of understanding the complexity of strategic choices and the resulting dynamic nature of new ventures’ legitimacy within EEs. It also suggests that policymakers and managers should consider flexible, context-specific approaches to foster small- and medium-sized companies' success by capitalizing on innovative strategies for active engagement and sustainable growth.

Source: European Management Journal

DOI: 10.1016/j.emj.2025.03.004

Authors: Jonathan Mukiza Kansheba, Clavis Nwehfor Fubah, Abdollah Mohammadparast Tabas, Mutaju Isaack Marobhe

Institutions: University of Agder, University of North Carolina at Pembroke, University of Pretoria, University of Oulu

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $2,160