ADMS 1000 Chapter Notes - Chapter 7: Dominant Design, Public Knowledge, Punctuated Equilibrium

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Modir

Document Summary

Sociopoliical legiimacy the endorsement of an industry, acivity, or or organizaional form by key stakeholders and insituions such as the state and government oicials, opinion leaders, or the general public. Cogniive legiimacy the level of public knowledge about a new industry and its conformity to established norms and methods relected in the extent to which it is taken for granted as a desirable and appropriate acivity. Failure to conform to societal and insituionalized norms and beliefs results in lack of legiimacy that will hinder their ability to recruit employees, obtain inancial and material resources, sell products and services to consumers, etc. A shakeout is a natural and healthy albeit painful process for an industry as it simply purges and weeds out the weaker compeitors. The irms remaining ater the shakeout emerge as strong compeitors able to scale up producion and serve the needs of a growing market. The producers that persist with a diferent approach usually exit the industry.