Socio-Political Legitimacy: An Integrative and Interdisciplinary Review and Agenda for Theory Development in Unit and Programmatic Approaches

Abstract

Firms operating across national borders are subject to scrutiny in both home and host countries. These multiple regimes of scrutiny increase their vulnerability to legitimacy crises that can significantly impact their operations and reputations. Over the past two decades, scholars in international business (IB) have investigated socio-political legitimacy (SPL), primarily through an institutionalist lens. However, despite extensive research across IB, political science, and sociology, the literature remains fragmented, characterized by diverse theoretical frameworks and modes of inquiry. This paper seeks to synthesize these disparate perspectives and identify converging themes. Specifically, it examines legitimacy through three core dimensions: property, perception, and process. Drawing on 250 studies from IB and management, sociology, and political science journals, this integrative review offers a comprehensive understanding of SPL, highlighting key theories, themes, and methodological trends. Furthermore, it introduces a “theory-on-theory” agenda aimed at advancing legitimacy both as a unit theory and in its relative role within institutional theory as a programmatic theory. The paper lays the foundations for future theorizing and empirical research on legitimacy-building strategies across diverse institutional contexts.