"The royal award goes to…": Legitimacy processes for female-led family ventures. Issue 3 (September 2021) - Hashim, Sumaya
Highlights: We develop a process model of the legitimacy formation for female-led family venture that consists of three main phases: individual legitimacy, market validity and royal validity. We observe meritocracy to be a key driving force throughout the legitimacy formation process where the merits of the founders and those involved in the business influence their activities and decisions. This offers alternative view to the nepotistic human resource practices that have stigmatized traditional family businesses. Highlight the importance of reciprocal relationships between the female founder and those rendering the legitimacy where validation and awards seemed to have an impact on family norms and change certain dynamics. Abstract: A notable phenomenon in the Gulf States, and in Bahrain in particular, is the increasing number of female-led family ventures. This phenomenon is surprising because women are reported to face many legitimacy challenges when establishing a family business in an Arab society, in which social and economic decisions are male-dominated. Thus, we explore how female-led family ventures gain legitimacy in an Arab society. We employ a multiple case-study approach to investigate three longitudinal cases. We develop a process model of legitimacy formation for female-led family ventures. The legitimacy formation consists of three main phases: individual legitimacy, market validity and royal validity. Our model suggests that meritocracy carves out and informs most decisions and activities throughout the phases of the legitimacy formation. Additionally, we identify four different interconnecting forces (family/business spillover, large voices, bargaining power and influence on family norms) that, if present, accelerate the legitimacy formation. Our analysis also suggests that there are interactions and reciprocal relationships among the founders and the people with whom they interact that can both influence and be influenced by the process of legitimacy formation.