Communicating Organizational Identity as Part of the Legitimation Process: A Case Study of Small Firms in an Emerging Field

Abstract

The purpose of this study is twofold: (a) to assess how small firms communicate their organizational identity (OI) as part of the legitimation process and (b) to explore communicated values as expressions of OI. Using nanotechnology as an emerging field context, the authors conducted interviews with managers from 23 small firms and analyzed the identity values expressed in company communication materials using computerized content analysis. The findings demonstrated a clear focus on gaining legitimacy by emphasizing social recognition and fitting in. Three paradoxes emerged as follows: being adaptable yet focused; being cutting edge yet traditional; and developing new products, yet ones that fit in with existing products. We propose that in addition to serving as expressions of firms’ OI, values can also drive the strategic communication of OI and may provide resolutions to these paradoxes. We introduce the term complex dynamic organizational identity to describe the way firms use multiple, fluid, and dynamic organizational identities as a component of strategic communication with stakeholders. We argue that firms should take a more active role in constructing a complex dynamic OI as a strategic approach to facing paradoxes and improving internal and external communication.