The legitimation of emerging industries to reduce the investment risk: The Case of Growing the eSports Pie
Keywords
Loading...
Authors
Issue Date
2020-07-10
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The purpose of this research is to analyze legitimacy in emerging industries and the effect on the
perceived investment risk. This will extend the knowledge on how to increase legitimacy and how it can
improve the investment climate to attract potential investors. The research methodology is a qualitative
case study. Data is gathered through literature, interviews and documents. The quality of the analysis
is supported with triangulation of data gathering and respondent selection. The scope of the research
is legitimacy in emerging industries that are truly innovative. Also, the scope incorporates the
sociopolitical and regulatory legitimacy of an industry. The research excludes established industries
and emerging industries that use incremental innovations because those industries face less adversity
in legitimacy. This makes it difficult to analyze the process of legitimation. The analysis resulted in
support for the propositions. This means that sociopolitical legitimacy and regulatory legitimacy
negatively affect the perceived investment risk. In other words, the higher the legitimacy, the lower the
perceived investment risk. Furthermore, the results show a positive effect of sociopolitical legitimacy
on regulatory legitimacy. Emerging industries should increase their legitimacy by creating a
sociopolitical environment that complies to the norms and values in the industry but is also appealing
to potential investors. This sociopolitical environment should be guarded by regulations and
enforcements that match with the norms and values in the market. Cooperation is crucial in increasing
regulatory legitimacy. An increasing legitimacy results in a decrease in the perceived investment risk.
The research got hindered by the consequences of the Covid-19 virus that made the findings even less
generalizable than normal qualitative research methodologies. Comparative case studies can increase
the generalizability of the findings. Furthermore, qualitative research methods should be applied to
statistically prove or disprove the findings of this research.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen