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What Unit or Level?Legitimation processes operating on organizations may be considered on several levels: (1) entire organizational populations, (2) individual organizations, or (3) subunits and specialized aspects of organizations, Ecological as well as many institutional approaches focus attention on the legitimation of organizational populations, collections of organizations exhibiting a given structure or form. Population ecologists such as Carroll and Hannan (1989) have used population density, or prevalence, as an indicator of cognitive legitimacy. They argued that organizational density serves as an indicator of the cognitive status of the form, the extent to which it is taken for granted, the degree to which "relevant actors regard it as the 'natural' way to organize for some purpose" (1989: 525), Critics of this interpretation (e.q. Zucker, 1989; Baum and Powell, 1995) have expressed concern about the indirect nature of this indicator legitimacy is inferred from density rather than directly assessed but to date there have been few attempts to develop more direct measures at this level. One notable exception is a recent study by Hybels, Ryan, and Barley (1994), which examined the impact of the numbers of articles in the business press dealing with biotechnology on the founding rates of U.S. biotechnology firms. They measured the net rate of favorable to unfavorable articles as an indicator of cumulative legitimacy during the period 1971 to 1989 and showed it to be positively correlated with founding rates. A different approach to assessing population-level legitimacy was developed by Baum and Oliver (1992), who examined the institutional embedding of day care centers the extent of relations between centers and various sources of legitimacy and resources and its effects on survival at both the overall population and individual organization levels.Whether or not an organizational form is regarded as legitimate, organizations within a population may also vary in their conformity to rules or norms or cultural models. Much re- search has been devoted to examining legitimation at the level of the individual organization, as can be seen in the fol- lowing three examples, one for each type of legitimacy. Research by Kimberly (1975), examining the cultural models employed by rehabilitation centers in New York City, suggested that organizations must reflect changes in cognitive frameworks if they are going to receive community support. The importance of normative legitimacy was examined by Singh, Tucker, and House (1986) in their study of the influence of state registration and municipal directory listings on the survival of a sample of community service organizations. And Deephouse (1996) has examined regulative legitimacy,in particular, the effects of actions by state regulatory agencies on commercial banks, including endorsement based on the assessment of a bank's capital and the extent of enforcement actions taken against a bank.Subunits or functions within an organization can also be the focus of legitimation processes. Accreditation agents may certify individual schools or departments as well as entire universities, and the NCAA provides normative guidelines for athletic programs within colleges (Stern, 1979). Edelman (1992) and Dobbin et al. (1993) have examined legitimacy effects associated with the presence and nature of affirmative action offices in organizations. The specialized and differentiated nature of modern organizations encourages the development of multiple, quasi-independent sources attending to one or another of these systems, and, conversely, diverse environmental sources simultaneously encourage differentiation within organizations as well.
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