The role of values to address a legitimacy threat

: a qualitative analysis based on the Volkswagen NOx emission scandal

Abstract

This Master Thesis explores the role of values to address a legitimacy threat. I analyzed how an organization can use values to address a legitimacy threat and whether values change over time when doing so. My study aimed to enrich literature focusing on legitimacy processes and strategies as well as on the legitimacy construct in general. For this purpose I conducted a single qualitative inductive study based on Volkswagen‟s NOx emission scandal which called the legitimacy of the organization into question. Thereby, I scrutinized Volkswagen‟s institutional communication based on 474 press releases published between January 1, 2014 and December 31, 2016 on Volkswagen‟s Media Services website. I applied the Grounded Theory and Temporal Bracketing Strategy as well as a frequency analysis to move from raw data to theory. The main findings of my Master Thesis suggest that organizations can address values to react to a legitimacy threat and that the addressed values are dynamic and stable at the same time. By addressing dynamic values the organization adapts the conveyed message strategically to stakeholders‟ expectations towards the organization after a transgression. Addressing stable values implies referring to established concepts to add credibility to the expressed message in the legitimacy defense process. The usage of values in Volkswagen‟s institutional communication gives hints that Volkswagen actively avoided applying the decoupling strategy to defend their legitimacy, although it constitutes a frequently described practice. My study provides also insights for practitioners as I outline how to manage effectively a legitimacy threat by addressing values.

Date of Award	18 Jul 2017
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Tommaso Ramus (Supervisor)