Fool’s Gold or Gold Rush? An Entrepreneurial Dilemma

  • Sumeet Malik
  • Chandrika Rathee


One of the critical issues among the myriad facing entrepreneurs is ‘liabilities of newness’. These liabilities can be severe in emerging industries and attenuated by legitimacy acquisition. Aldrich and Fiol (Acad Manag Rev 19(4):645–670, 1994), in their seminal paper, highlighted the legitimacy trade-off by theorizing about strategies at various levels (organizational to institutional) that could collectively help entrepreneurs succeed in new industries. Till about two decades ago, researchers would have termed ‘entrepreneurial activity’ as search for fool’s gold. However, Aldrich and Fiol’s study generated so much interest among researchers that now we know better. In this study, the authors map the entire legitimacy landscape since Aldrich and Fiol’s paper by looking at two dimensions that are at core of this entrepreneurial dilemma—Locus of Control and Degree of Conflict.


Fools Rush in Entrepreneurship Legitimacy Strategic legitimacy Organizational legitimacy Interactional Legitimacy Emerging industries New industry entrepreneurship Institutional theory Cultural entrepreneurship 


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Sumeet Malik
    • 1
  • Chandrika Rathee
    • 1
  1. 1.IE Business SchoolIE UniversityMadridSpain

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