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Fenster schliessen

Definition of Legitimacy

Legitimacy is a generalized perception that structures or actions of an organization conform to the existing institutions

Fenster schliessen

8.2 Institutional Environments and Organizational Structures

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Fenster schliessen

Technical Environment

  • Products and services are exchanged through markets
  • Organizations strengthen their competitive advantage by effective controlling of work processes

Main Criteria: Efficiency

Fenster schliessen

Institutional Environment

  • Demonstrate conformism with institutionalised rules
  • This way gain legitimacy and support from the environment

Main Criteria: Legitimacy

Fenster schliessen

Combination of Technical and Institutional Environement

Matrix

Institutional Environment

strong                                            weak

strong             bank, hospitals                               industrial companies

weak               psychiatric hospitals, churche        restaurant, fitness centers

Technical Environment

Fenster schliessen

Structure of the Argument

Survival of organizations: Organizations, which include in their formal structure social legitimated and rationalized elements, maximize their legitimacy, ensure the flow of resources and so improve their survivability.