The dynamics of legitimacy building a case study of new ventures in the Norwegian petroleum

Contrary to existing research paying attention to trust building and networks as important for building legitimacy in new venture creation, this article claims that early-stage firms presenting new technology in the market obtain cognitive legitimacy both through relational and technological fitness. Our argument is that cognitive legitimacy, i.e. how knowledge is understood and interpreted by their stakeholders, is dependent on both a firm’s technological and relational competence. Empirical results supporting this notion are demonstrated by a case study of three innovative companies, performing drilling and exploration activities in the Norwegian Petroleum Sector. The results further illustrate how firms either having a high degree of technological fit/ low degree of relational fit or high degree of relational fit/low degree of technological fit have troubles in gaining cognitive legitimacy. This supports a notion of a mutual dependency of both relational and technological fit for building cognitive legitimacy.