Asymmetrical Institutional Conflict and Discourse-based Institutional Entrepreneurship

This study explores the manner in which young, innovative firms resolve institutional conflict to establish legitimacy after entering new markets. Prior research has highlighted the use of isomorphism, decoupling, and deinstitutionalization as mechanisms for establishing legitimacy. However, these approaches may not be practical for young firms with few resources. We build on prior research in institutional theory to explain how differences in legitimacy judgment processes create asymmetrical institutional conflicts that do not require costly campaigns to rectify. Instead, young firms may use discourse management to resolve the conflict and achieve growth in new markets.