Productive foreign entrepreneurship: process tracing a sequencing strategy for legitimation in a foreign institutional context
International Entrepreneurship and Management Journal
Published online on May 06, 2026
Abstract
{"p"=>"Entrepreneurs who venture into foreign countries encounter a different institutional logic. Understanding and addressing such logic is essential to overcoming the liabilities of foreignness and newness to legitimize the foreign venture. Prior research has shown that foreign entrepreneurs who fail to align with local institutional logic struggle to overcome resource constraints, thereby limiting their venture growth. This study examined the legitimation process under institutional pluralism by exploring how productive foreign entrepreneurs achieve legitimacy in China. Therefore, our longitudinal study traced the process of a European entrepreneur in China over almost 2 years, using interviews, weekly diary entries, and archival data. By theorizing differentiated legitimacy thresholds and audience-contingent sequencing, this study closes the gap between legitimacy theory and foreign entrepreneurship research. It advances understanding of productive foreign entrepreneurship in culturally distant contexts and provides a process mechanism of how legitimacy is constructed, challenged, and partially stabilized under conditions of institutional pluralism."}