MANAGING ORGANIZATIONAL LEGITIMACY OF PUBLIC PRIVATE JOINT VENTURES - A CASE STUDY

This paper examines the general manageability of issues affecting the overall organisational legitimacy of public private joint ventures (PPJVs) by investigating Namdeb, a PPJV between De Beers and the Government of Namibia. 42 interviews were conducted - 41 with stakeholders and one with the focal organisation, Namdeb. Results show that the company's organisational legitimacy is affected by a number of political, economic, social, environmental and legislative factors which are often interrelated and complex. It is concluded that on the one hand, most of the issues are controllable and that companies are able, to a great extent, influence their organisational legitimacy. On the other hand, managing organisational legitimacy is a complex process as companies do not always have control over issues affecting their legitimacy. The data also shows that most issues affecting organisational legitimacy are moral and to a lesser extent pragmatic and cognitive. In order to garner organisational legitimacy, managers are advised to address issues individually and not to invest only in an overall communication strategy as stakeholders expect appropriate and effective action, for example in cases where the rights of stakeholders are violated and where issues of corruption are evident.