Identification and Ranking of Factors Affecting the Legitimacy of Entrepreneurial Businesses with Emphasis on Individual Decision-Making

Document Type : Original Article

Authors

1 Department of Business Administration, Payame Noor University, Tehran, Iran.

2 Department of Public Administration, Payame Noor University, Tehran, Iran.

Abstract

Individual decision-making by entrepreneurs plays a significant role in determining the legitimacy of entrepreneurial businesses. Accordingly, the aim of this research was to identify and rank the factors affecting the legitimacy of entrepreneurial businesses with an emphasis on individual decision-making. This research was applied in terms of purpose and qualitative in terms of execution method. The study population included managers of industrial companies in Kermanshah city in the year 2024-2025. From this population, using purposive snowball sampling until theoretical saturation was reached, 14 individuals were selected as experts from among industrial, service, and agricultural managers. Required data were collected through two methods: library research and field research (interviews). For the validity and reliability of the present study, Lincoln and Guba’s criteria (credibility, transferability, dependability, and confirmability) were utilized. The Delphi research findings indicated the identification and ranking of factors affecting the legitimacy of entrepreneurial businesses with an emphasis on individual decision-making factors, including judgmental view, the risk of social sanctions, social awareness, economic stakes, and a lack of trust. Thus, the results demonstrated that individual decision-making can play a major role in the legitimacy of entrepreneurial businesses. Accordingly, small and medium-sized enterprises (SMEs) should design programs to increase public trust and reduce social risks to provide a suitable environment for the growth of entrepreneurial businesses.

Keywords

Main Subjects

References

References
Aazami, M., Nadershahi, M., & Hosseini, S. N. (2024). Modeling the Application of Cloud Computing in Small Entrepreneurial Businesses with a Focus on Craft Industries. Education and Management of Entrepreneurship, 3(2), 23-38. doi:10.22126/eme.2024.10404.1095 (in Persian).
Acuti, D., Bellucci, M., & Manetti, G. (2023). Preventive and Remedial Actions in Corporate Reporting Among "Addiction Industries": Legitimacy, Effectiveness and Hypocrisy Perception. Journal of Business Ethics, 189, 1–21. doi:10.1007/s10551-023-05375-3.
Adomako, S., & Tran, M. (2025). Responsible Entrepreneurship and Social Legitimacy in Turbulent and Demanding Market Environments. Corporate Social Responsibility and Environmental Management, doi:10.1002/csr.3131.
Ahangari, S., Babaei, M. H., & Ahangari, E. (2024). Identifying the Opportunities to Start Entrepreneurial Businesses: An Effort to Achieve Sustainable Rural Livelihood. Journal of Entrepreneurship Research, 3(2), 83-108. doi:10.22034/jer.2024.2027221.1106 (in Persian).
Alamshahi, S., Farhadinejad, M., & Ebrahimi, S. A. (2021). Identify and Prioritize the Factors of Inefficient Decisions by Public Sector Managers (Case Study: Government Organizations of Golestan province). Public Organizations Management, 10(1), 155-170. doi:10.30473/ipom.2021.8226 (in Persian).
Bitektine, A. (2011). Toward a theory of social judgments of organizations: The case of legitimacy, reputation, and status. Academy of Management Review, 36(1), 151–179. doi:10.5465/AMR.2011.55662572.
Cho, C. H., Roberts, R. W., & Patten, D. M. (2010). The language of US corporate environmental disclosure. Accounting, Organizations and Society, 35(4), 431–443. doi:10.1016/j.aos.2009.10.002.
Dehyadegari, S., Poursaeed, M. M., Nesari, A., & Ashrafzadeh Afshar, A. (2025). Factors Affecting Social Media-Based Entrepreneurial Intentions among Female University Students. Education and Management of Entrepreneurship, 3(4), 19-42. Doi: 10.22126/eme.2025.11819.1147. (in Persian).
Díez-Martín, F., González, A. B., & Prado-Román, C. (2018). Factors Affecting Individual Decisions Based on Business Legitimacy. Journal of Promotion Management, 25(1), 181-199. doi:10.1007/978-3-319-75990-6_1.
Dorkandi, B., & Khademradi, M. (2019). Investigating Individual and Organizational Decision-Making. Fifth National Conference on Innovative Curriculum Planning in Iran, Tehran (in Persian).
Doroudi, H., & Mirzayi, Y. (2022). Investigation of Factors Influencing Managers' Decision-Making in Government Organizations. Journal of Management and Accounting Studies, 8(2), 1-36. (in Persian).
Efkemann, S. A., Scholten, M., Bottlender, R., Juckel, G., & Gather, J. (2022). Influence of mental health professionals' attitudes and personality traits on decision-making around coercion: Results from an experimental quantitative survey using case vignettes. Acta psychiatrica Scandinavica, 146(2), 151–164. doi:10.1111/acps.13429.
Feizollahi, S., Shirmohammadi, A., Mirzaeian, R., & Sohrabzadeh, S. (2024). Analyzing the Factors Influencing the Development of Entrepreneurial Home-Based Businesses in Ilam Province. Education and Management of Entrepreneurship, 3(1), 85-104. doi:10.22126/eme.2024.9889.1059 (in Persian).
Ferreira, C., Merendino, A., & Meadows, M. (2023). Disruption and Legitimacy: Big Data in Society. Information systems frontiers : a journal of research and innovation, 25(3), 1081–1100. doi:10.1007/s10796-021-10155-3 (in Persian).
Florent, V., Marie-Axelle, G., Laurent, C., Frédéric, M., Marie, P., & Anthony, P. (2021). The role of perceived legitimacy in understanding traffic rule compliance: A scoping review. Accident; analysis and prevention, 159, 106299. doi:10.1016/j.aap.2021.106299.
Fotouhi Ardakani, M., & Khojasteh Avorgani, R. (2024). Exploring Factors Influencing Decision-Making in Small and Medium Enterprises in Zahedan City. Education and Management of Entrepreneurship, 3(2), 39-68. doi:10.22126/eme.2024.10876.1109 (in Persian).
Garon, N., Doucet, E., & Inness, B. (2024). Decomposing decision-making in preschoolers: Making decisions under ambiguity versus risk. PloS one, 19(9), e0311295. doi:10.1371/journal.pone.0311295.
Halleck, J. R., & McKinney, R. E. (2025). Don’t ruin a good thing; how employees may tarnish the new venture’s legitimacy. New England Journal of Entrepreneurship, doi:10.1108/neje-12-2023-0105.
Hamdan, Y., Sunaryo, D., Auroh, Y., & Hickmatullah, I. (2025). Cultural Dimensions and Their Influence on Entrepreneurial Decision-Making: A Cross-Cultural Analysis. Ilomata International Journal of Management, 6(3), 1233–1250. doi:10.61194/ijjm.v6i3.1764.
Higgins, M., & Gulati, R. (2006). Stacking the deck: The effects of top management backgrounds on investor decisions. Strategic Management Journal, 27(1), 1–25. doi:10.1002/smj.495.
Hosseini, R., & MalehMir Chegini, S. (2024). Analysis of Strategies for Empowering Employees in Agricultural Processing Industries with an Emphasis on Improving Entrepreneurial Spirit (Case Study: Danone Dairy Pars Production Company). Education and Management of Entrepreneurship, 3(1), 16-1. doi: 10.22126/eme.2024.10317.1092. (in Persian).
Khoshmaram, M., & Raoufi, A. (2025). Single-Child Families and Entrepreneurial Intentions among Students of Ilam University: A Role for Parents. Education and Management of Entrepreneurship, 3(4), 1-18. doi: 10.22126/eme.2025.11205.1119. (in Persian).
Korang Beheshti, S., Mirzaeenia, A., & Taghipour, F. (2025). Designing an Integrated Media Model for Small and Medium-Sized Enterprise Development: Evidence from Isfahan's Entrepreneurial Ecosystem. Journal of Entrepreneurship Research, e728272 doi:10.22034/jer.2025.2063969.1321 (in Persian).
Kostova, T., Roth, K., & Dacin, M. T. (2008). Institutional theory in the study of multinational corporations: A critique and new directions. Academy of Management Review, 33(4), 994–1006.doi:10.5465/AMR.2008.34422026.
Kozioł-Nadolna, K., & Beyer, K. (2021). Determinants of the decision-making process in organizations. Procedia Computer Science, 192, 2375-2384. doi: 10.1016/j.procs.2021.09.006.
Kwak, J., Zhang, Y., & Yu, J. (2019). Legitimacy building and e-commerce platform development in China: The experience of Alibaba. Technological forecasting and social change, 139, 115–124. doi:10.1016/j.techfore.2018.06.038.
Liang, J., Chen, X., Li, T., & Wang, Y. (2021). Beyond Justice Perceptions: The Role of Interpersonal Justice Trajectories and Social Class in Perceived Legitimacy of Authority Figures. Frontiers in psychology, 12, 595731. doi:10.3389/fpsyg.2021.595731.
Liu, P., & Cao, Y. H. (2023). Going Beyond the "Normative vs. Social" Standard: A Preliminary Framework for Evaluating the Legitimacy of International Institutions. Society, 1–11. doi:10.21203/rs.3.rs-3972661/v1.
Lock, D., Filo, K., Kunkel, T., & Skinner, J. L. (2015). The Development of a Framework to Capture Perceptions of Sport Organizations Legitimacy. Journal of Sport Management, 29(4), 362–379. doi:10.1123/jsm.2014-0005.
Maarefvand, Z., & Mansouri, M. (2025). Evaluation of Vocational and Technical Education Programs in Developing Entrepreneurial Skills; A CIPP Model Application (Case of Study: Zabadasht Karaj Technical and Vocational Center). Education and Management of Entrepreneurship, 4(2), 107-136. doi: 10.22126/eme.2025.12181.1174 (in Persian).
Magelssen, M., & Bærøe, K. (2019). Can clinical ethics committees be legitimate actors in bedside rationing?. BMC medical ethics, 20(1), 97. doi:10.1186/s12910-019-0438-y.
Malik, F., Shahzad, A., & Mehmood, Z. (2024). Understanding the socioeconomic dimensions of antibiotic resistance: a critical marketting perspective of healthcare stakeholders. JPMA. The Journal of the Pakistan Medical Association, 74(11), 11–18. doi:10.47391/JPMA.AKU-EPP-04.
Miotto, G., Blanco-González, A., & Díez-Martín, F. (2020). Top business schools legitimacy quest through the Sustainable Development Goals. Heliyon, 6(11), e05395. doi:10.1126/science.1240466.
Moradi, S., Abdollahi, A., Hoseinikashkooye, S., & Khorshidi, G. (2025). A Conceptual Model for Controlling Strategic Assumptions in Entrepreneurial Business Management: Integrating Change Analysis and Intelligent Strategic Orientation. Education and Management of Entrepreneurship, 4(1), 127-144. doi:10.22126/eme.2025.12049.1169 (in Persian).
Moradinejad, H., Alipour Sarabi, F., & Gholamrezaei, S. (2024). Examining the Relationship between Spiritual Capital and the Sustainability of Entrepreneurial Agricultural Enterprises (Case Study: Dairy Farming Units in Khorramabad). Education and Management of Entrepreneurship, 3(2), 113-130. doi:10.22126/eme.2024.10586.1101 (in Persian).
Muchnik, L., Aral, S., & Taylor, S. J. (2013). Social influence bias: A randomized experiment. Science, 341(6146), 647–651.
Naderi, N., KHodadousti, M. & Khosravi, E. (2025b). Conceptualizing the Improvement of Entrepreneurial Behavior Among Students at Razi University with an Emphasis on the Development of Entrepreneurship Education. Journal of Entrepreneurship Research, 4(1), 37-52. doi: 10.22034/jer.2024.2015048.1071 (in Persian).
Naderi, N., Rezaee, B., Karamian, F., & Khosravi, E. (2025a). Exploring the Phenomenon of Non-Participation of Beneficiaries of the Imam Khomeini Relief Foundation in Kermanshah Province in Entrepreneurship and Employment Generation Projects: Application of Grounded Theory. Education and Management of Entrepreneurship, 3(4), 91-114. doi: 10.22126/eme. 2025.11821.1148 (in Persian).
Nicholas, G., Paparoidamis, A., Constantine, S., Katsikeas, B., & Chumpitaz, C. (2017). The role of supplier performance in building customer trust and loyalty: A cross-country examination, Industrial Marketing Management, 6(14), 1-15. doi:10.1016/j.indmarman.2017.02.005.
Pittaras Odin, R., Anderson, J., Jacobs, J., Jones, D., Li, H. H., Lumry, W., Manning, M., Soteres, D., Tachdjian, R., Yang, W., & Bernstein, J. A. (2024). The utility of shared decision making in the management of hereditary angioedema. Allergy and asthma proceedings, 45(6), 434–437. doi:10.2500/aap.2024.45.240071.
Pittaras, E., Rabat, A., & Granon, S. (2020). The Mouse Gambling Task: Assessing Individual Decision-making Strategies in Mice. Bio-protocol, 10(1), e3479. doi:10.21769/ BioProtoc.3479.
Roshanzadeh, M., Vanaki, Z., & Sadooghiasl, A. (2020). Sensitivity in ethical decision-making: The experiences of nurse managers. Nursing ethics, 27(5), 1174–1186. doi:10.1177/ 0969733019864146 (in Persian).
Rosser, C., Sager, F., & Leib, S. L. (2020). Six Recommendations to Build Legitimacy for Translational Research Organizations. Frontiers in medicine, 7, 586177. doi:10.3389/fmed. 2020.586177.
Roussy, V., Russell, G., Livingstone, C., & Riley, T. (2021). Mergers may enhance the legitimacy of community health organisations in neoliberal environments. Journal of health organization and management, ahead-of-print(ahead-of-print). doi:10.1108/JHOM-04-2020-0160.
Saeedi, A. A. (2024). Challenges and Opportunities for Legitimacy Generation in Innovative Businesses. Twentieth National Conference on Economics, Management, and Accounting, Shirvan (in Persian).
Shiri, G., Toutian Isfahani, S., & Sohrabi, S. (2021). The Effect of Environmental Uncertainty on Entrepreneurial Orientation with the Mediating Role of Innovation Speed. Journal of Iranian Social Development Studies, 13(2), 199-214. https://sanad.iau.ir/Journal/jisds/ Article/821838/ FullText. (in Persian).
Shiri, N. & Badpa, B. (2024). Predicting the Entrepreneurial Intention based on the Financial Intelligence Dimensions: A Study among Accounting Students. Journal of Entrepreneurship Research, 3(2), 51-64. doi: 10.22034/jer.2024.2031156.1128 (in Persian).
Shiri, N., Mirakzadeh, A. A. & Zarafshani, K. (2022). Determinants of Entrepreneurial Behavior among Iranian Students: A Gender Analysis. Journal of Entrepreneurship Research, 1(1), 87-101. doi: 10.22034/jer.2022.697520 (in Persian).
Singh, P., Fesshaye, B., Lee, C., Njogu, R. N., Karron, R. A., & Limaye, R. J. (2024). Maternal Immunization Decision-Making Among Pregnant and Lactating People in Kenya: A Qualitative Exploration of Peer Influences on Vaccine Decision-Making for a Future RSV Vaccine. Maternal and child health journal, 28(10), 1822–1832. doi:10.1007/s10995-024-03982-8.
Stipinovich, A. M., Tönsing, K., & Dada, S. (2023). Communication strategies to support decision-making by persons with aphasia: A scoping review. International journal of language & communication disorders, 58(6), 1955–1976. doi:10.1111/1460-6984.12925.
Suddaby, R., Bitektine, A., & Haack, P. (2017). Legitimacy. Academy of Management Annals, 11(1), 451–478. doi:10.5465/annals.2015.0101.
Sun, H. Y., Xiao, Y. T., & Yang, S. S. (2024). The Group Intertemporal Decision-Making Process. Behavioral sciences (Basel, Switzerland), 14(9), 815. doi: 10.3390/bs14090815.
Talukdar, T., Román, F. J., Operskalski, J. T., Zwilling, C. E., & Barbey, A. K. (2018). Individual differences in decision making competence revealed by multivariate fMRI. Human brain mapping, 39(6), 2664–2672. doi:10.1002/hbm.24032.
Tan, J., Linos, E., Sendelweck, M. A., van Zuuren, E. J., Ersser, S., Dellavalle, R. P., & Williams, H. (2016). Shared decision making and patient decision aids in dermatology. The British journal of dermatology, 175(5), 1045–1048. doi:10.1111/bjd.14803.
Tankebe, J., Reisig, M. D., & Wang, X. (2016). A multidimensional model of police legitimacy: A cross-cultural assessment. Law and human behavior, 40 (1), 11–22. doi :10.1037/lhb0000153.
Überbacher, F. (2014). Legitimation of New Ventures: A Review and Research Programme. Journal of Management Studies, 51(4), 667–698. doi:10.1111/joms.12077.
Urby, H., McEntire, D. A., & Urby, M. V. (2019). The legitimacy challenge facing Emergency Management: Learning from the public administration experience. Journal of emergency management (Weston, Mass), 17(3), 167–176. doi:10.5055/jem.2019.0415.
Voronov, M., & Yorks, L. (2015). Did you notice that?” Theorizing differences in the capacity to apprehend institutional contradictions. Academy of Management Review, 40(4), 563–586. https://www.jstor.org/stable/43699309.
Wong, K., Hicks, L. M., Seuntjens, T. G., Trentacosta, C. J., Hendriksen, T. H. G., Zeelenberg, M., & van den Heuvel, M. I. (2019). The Role of Mindful Parenting in Individual and Social Decision-Making in Children. Frontiers in psychology, 10, 550. doi:10.3389/fpsyg.2019.00550.
Zhao, J. S., Wang, X., & Zhang, H. (2020). The Role of Perceived Legitimacy and Its Effect on Prison Adaptation: A Longitudinal Study on a Chinese Juvenile Prison. International journal of offender therapy and comparative criminology, 64(1), 100–123. doi:10.1177/ 0306624X19873097.
Zimmer, T. U., König, C. J., Bajwa, N. H., Shahid, M. S., & Naz, E. (2025). Empowering growth: delegating decision-making authority during the evolution of new businesses. International Journal of Entrepreneurial Behavior & Research, 1–21. doi:10.1108/ijebr-02-2025-0185.

Files

History

  • Receive Date: 20 August 2025
  • Revise Date: 09 September 2025
  • Accept Date: 01 November 2025

Share

How to cite

Statistics