Effect of Social Pressure and Trust on Organizational Legitimacy: A Retailing Sector Perspective

Abstract

Enterprises operate in complex and competitive environments where stakeholders have become more demanding regarding corporate behavior. Organizations must respond to social demands and build trust among stakeholders to be perceived as legitimate. Positive legitimacy evaluations give companies better access to relevant resources, stakeholder support, higher purchasing levels, or stronger commitment. In the retailing sector, competition has strengthened even more than in other sectors due to the complexity of differentiation through tangible matters. Therefore, the main objective of this research is to analyze the effect of social pressure and trust on organizational legitimacy. Next, the impact of legitimacy on consumer purchase intention and engagement will be analyzed. An online survey was distributed among Spanish consumers to achieve this purpose, gathering 200 valid responses. To treat the data, PLS-SEM was applied, and the results confirmed a positive and significant relationship between trust, social pressure, and legitimacy, as well as between legitimacy, engagement, and purchase intention. This situation reflects the importance of appropriate corporate behavior for the success of corporations. The implications of this research can be used by retailing sector managers to improve their social acceptance, ensure longlasting relationships, and improve sales in the future.