Title: Struggling for existence: a study on the pragmatic legitimacy of Indonesian electronic payment companies

Authors: Airlangga Surya Kusuma; Rangga Almahendra

Addresses: Faculty of Economics and Business, University of National Development "Veteran" Jakarta, Jalan Rumah Sakit Fatmawati, Pondok Labu, Jakarta, 12450, Indonesia ' Faculty of Economics and Business, Gadjah Mada University, Jalan Sosio Humaniora, Bulaksumur, Yogyakarta, 55281, Indonesia

Abstract: Our study is interested in observing the legitimacy-seeking behaviours of electronic payment companies in Indonesia. We argue that in a growing industry, pragmatic legitimacy judgements of a company are derived from socio-cognitive constructs from external actors but rather occur at the individual level. We observe the interaction mechanism between openness to a new value system, positive affection, and company familiarity toward a pragmatic legitimacy judgement on electronic payment companies. This research utilised 211 participants and employed structural equation modelling - partial least square (SEM-PLS). This research found that openness to a new value system and positive affection positively represented pragmatic legitimacy judgement. This research also found that those relationships are moderated by company familiarity in different ways.

Keywords: pragmatic legitimacy judgement; openness to a new value system; positive affection; company familiarity; start up; payment; fintech; institutional entrepreneurship.

DOI: 10.1504/IJTE.2022.127168

International Journal of Technoentrepreneurship, 2022 Vol.4 No.3, pp.242 - 258

Received: 29 Jun 2021
Accepted: 16 Jun 2022
Published online: 23 Nov 2022 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article