An Examination of Differences Between Organizational Legitimacy and Organizational Reputation*

abstract Organizational legitimacy and organizational reputation have similar antecedents, social construction processes and consequences. Nonetheless, an improved understanding of relationships between legitimacy and reputation requires that differences between the two be specified and clarified. Our examination of past research indicates that legitimacy emphasizes the social acceptance resulting from adherence to social norms and expectations whereas reputation emphasizes comparisons among organizations. We empirically examine two antecedents of the financial, regulatory, and public dimensions of legitimacy and reputation in a population of US commercial banks. We find that isomorphism improves legitimacy, but its effects on reputation depend on the bank's reputation. Moreover, higher financial performance increases reputation, but does not increase the legitimacy of high performing banks.     

The institutionalization of information system project management practices

Considering that current structures are the result of choices made in specific contexts in the past, we adopt a historical perspective in order to understand how some information systems (IS) project management practices evolved and became norms. Using historical methods, we analyze sources of data spanning 52 years of IS project management (1945–2007) – interviews with IS project managers and academics, IS project management textbooks, curricula, and the scientific and professional literature – to: (1) determine whether some IS project management practices may now be considered institutionalized, and (2) understand their institutionalization processes over time. Based on this analysis, three groups of IS project management practices may now be considered institutionalized: formal control, external integration, and project risk management.     

An estimate of the direct costs of bankruptcy in New Zealand

This paper provides estimates of the direct costs of bankruptcy in New Zealand by analysing 27 corporate receiverships. The analysis indicates that the direct costs of receivership have a median value of 8% of firm value. The evidence also indicates that direct bankruptcy costs are a decreasing function of size.     

Wilderness and cultural tour guides,place identity and sustainable tourism in remote areas

This paper is concerned with understanding the relationship between place identity and sustainable tourism in remote areas. It examines wilderness and cultural tourism guides’ place identity and how those identities are deployed in designing and delivering their activities, then evaluates how these activities engage with the goals of sustainable tourism. A mixed-method approach collected data from textual documents, participant observation and semi-structured interviews. A literature review and early document analysis identified three exemplary Yukon place identity narrative themes: (1) Masculinist Narratives, (2) Narratives of the New Sublime and (3) Narratives of Loss. A narrative framework emerged from initial findings and was refined on an on-going basis throughout the research process, and used iteratively as an analytical tool. Sustainable tourism is understood in relation to geotourism and place-based approaches. Instrumentally, the study provides insight into strategies used by guides to engage with, enhance and broaden goals for and understandings of sustainable tourism. It considers the role of infrastructure and the significance of lifestyle entrepreneurs. Authenticity is engaged to examine how it is operationalized as a crucial dimension of sustainable tourism in remote areas and is used to examine instrumental considerations, as well as a potential tool to “liberate place”.     

CFAR: A NEW TOOL FOR PREDICTING CREDIT QUALITY

Because of the limitations of traditional analytical ratios based on book leverage and coverage ratios, Fitch IBCA established a credit rating methodology that gives primacy to cash flow measurements. Its approach focuses on the cash flow adequacy ratio, or CFAR. CFAR is based on the premise that companies generating strong cash flow from operations relative to maturing debt have better credit profiles than those forced to rely on outside sources of capital. CFAR serves as proxy for company's financial flexibility; the higher the CFAR, the more financial stress the company can withstand.
To assess the effectiveness of CFAR as a credit tool, Fitch IBCA surveyed 47 U.S. industrial companies with a Bloomberg composite rating of 'A' from 1990–1995. Based on its cash flow analysis, the rating agency ranked the companies and predicted that many were likely to be upgraded or downgraded. In a three-year period, 30% of the ratings in the sample group changed. Of the 14 ratings changes, Fitch IBCA forecast 10 correctly, which translates into a predictive score of over 70%.     

Effects of Economic Shocks on Children's Employment and Schooling in Brazil

This paper uses longitudinal employment survey data to analyze the impact of household economic shocks on the schooling and employment transitions of young people in metropolitan Brazil. The paper uses data on over 100,000 children ages 10-16 from Brazil's Monthly Employment Survey (PME) from 1982 to 1999. Taking advantage of the rotating panels in the PME, we compare households in which the male household head becomes unemployed during a four-month period with households in which the head is continuously employed. Probit regressions indicate that an unemployment shock significantly increases the probability that a child enters the labor force, drops out of school, and fails to advance in school. The effects can be large, implying increases of as much as 50% in the probability of entering employment for 16-year-old girls. In contrast, shocks occurring after the school year do not have significant effects, suggesting that these results are not due to unobserved characteristics of households that experience unemployment shocks. The results suggest that some households are not able to absorb short-run economic shocks, with negative consequences for children.     

Developing Woodlands for Tourism: Concepts,Connections and Challenges

Driven by potential economic benefits for rural communities, tourism has become an increasingly central focus of sustainable woodland management in Great Britain. Knowledge of the values and uses of woodlands for tourism, and the impacts of woodland management on tourism is, however, limited. This paper outlines qualitative research in three study areas which used in-depth interviews and discussion groups to engage with tourism providers to explore these issues. It argues that woodlands are an important constituent of ‘countryside capital’, with woodlands” imagery and accessibility, and their natural and man-made resources used directly and indirectly by tourism enterprises. A landscape-scale approach to tourism planning and development is advocated to ensure a more holistic use of woodlands for tourism. Critical issues are identified as being strategy and integration, local engagement, sharing of information, resources, costs and benefits between stakeholders, and policies and practices to stimulate innovation and growth.