M&O Seminar Jost Sieweke

12/06/2018

12:30 - 13:30

Pantry 4th floor

Legitimacy as a Multilevel Process: Evidence from the 2008 Financial Crisis

Jost Sieweke (VU)

Amsterdam Business Research Institute

Business and Organisation

Conference / Symposium / Seminar

On Thursday, 6 December (12:30 to 13:30), our very own colleague Jost Sieweke will present the paper "Legitimacy as a Multilevel Process: Evidence from the 2008 Financial Crisis".

Lunch will be provided.

Abstract
We advance research on legitimacy and institutional change by theorizing a multilevel model of how an individual legitimacy judgment—propriety—is affected by an exogenous crisis event and how two collective constructs—validity and consensus—influence this effect. Disentangling these perceptual components of the legitimacy process and clarifying how they operate across different levels offers important insights on how propriety judgments change in the aftermath of a crisis. Specifically, we theorize that changes in evaluators’ propriety judgments are strongest in contexts characterized by high validity and low consensus, because, in such contexts, a crisis may reveal that validity is contested. Using a regression discontinuity design, we examine the effect of the 2008 Financial Crisis on individuals’ propriety judgments about free markets in 15 different countries. Our results provide empirical support for our theory. Implications for research on legitmacy and institutional change, as well as extant methodological approaches in legitimacy research, are discussed.