Enhancing legitimacy through network attention: a guide for nascent entrepreneurs and start-ups

Abstract

Purpose Business discontinuation rate among entrepreneurial start-ups is tremendously high due to the liability of newness faced by nascent entrepreneurs. The purpose of this paper is to examine how nascent entrepreneurs can utilize entrepreneurial networks to build legitimacy and enhance their ability to effectively practice entrepreneurial marketing (EM) for start-up survival. Design/methodology/approach The current piece of writing is a conceptual paper based on a thorough study of the existing literature at the intersection of entrepreneurial networking (EN), legitimacy and EM. Findings This paper finds that legitimacy is a foundational and operational dimension of EM and a mediating mechanism between network attention and EM outcomes. Entrepreneurs build confirming and strategic legitimacies by directing network attention to peripheral actors (who are not directly invested, such as customers and media), which serves as a prerequisite for initial market acceptance. Consequently, this process enhances cognitive, pragmatic and moral legitimacies, thereby attracting committed actors (who are directly invested, such as investors and suppliers). This allows entrepreneurs to acquire vital resources and mitigate the liability of newness. Practical implications Entrepreneurs who direct their network attention appropriately are better positioned to leverage networks and practice EM. The network of peripheral actors is more useful in the early stages to validate products, enhance visibility and build confirming and strategic legitimacies. In contrast, the network of committed actors becomes critical as the firm begins to scale and requires strategic resources and impactful EM. Originality/value This paper shifts the focus of EM theory from broad descriptions of network utility toward a systematic, actor-level and legitimacy-sensitive understanding of how entrepreneurs leverage networks for building legitimacy, effective EM and venture success.

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