The Interplay Between Resources and Legitimacy in an Entrepreneurial Firm: A Case Study of Sockitz Ltd.

The resource based view and concept of legitimation are both well known ideas. Legitimation is seen as enabling new ventures to overcome the significant hurdle presented by the liability of newness. Equally, start ups tend to be at the early stages of resource development, and therefore often lack some resources. This dissertation investigates the existence interplay between firm resources and legitimacy. Firstly, the body of literature in the areas of the resource based view; legitimacy; the liability of newness; and theories of entrepreneurship are reviewed. A case study of an entrepreneurial SME which produces electrical safety products, Sockitz Ltd, is used, following a theory building methodology. The findings show that there may be strong linkages between a firm’s resources and the aspects of legitimacy which are developed