The intersection of legitimacy needs, actions and reform policy : the case of private higher education

Purpose: This paper aims to examine how a combination of legitimacy needs and actions (LNAs) can shed light on the legitimacy behaviour of private higher education institutions (PHEIs) operating in an institutional business environment that is witnessing significant public–private sector role reversal. The legitimacy process is promoted as an exemplar to inform the increasing number of public–private sector role reversals in the utility, transportation, health and telecommunication sectors. Design/methodology/approach: Based on empirical evidence, this paper triangulates data from archival policy announcements, retrospective case studies and face-to-face interviews. A replication logic methodology was used to establish LNAs and categorized themes. Findings: The findings show that market, relational, investment, alliance and social legitimacy needs are crucial drivers for PHEIs when hybridizing their legitimacy practices, especially during critical phases of institutional reform. The proposed conceptual framework demonstrates how the legitimacy construction process is the result of internal development and external validation. Research limitations/implications: In providing some empirical descriptions and generalizations, the model makes limited attempt to determine with any specificity how PHEIs interact with their institutional environment, beyond a process of data triangulation. Practical implications: The proposed LNA framework is especially relevant in industries where the government has historically been a major institutional stakeholder, but where market liberalization is leading to increasingly active participation by the private sector. Findings can help PHEIs deal with reform policies by establishing deep and varied expertise inside their organizations and through links with international universities, industries and government agencies enable knowledge exchange, transfer, partnerships and the development of alliance capitalism. Originality/value: This study provides a more comprehensive approach for theorizing the interrelatedness and embeddedness of organizations with common business and institutional demand factors and linkages and their changing roles, particularly the multi-scale impacts of LNAs on legitimacy sustainability.