Standing Out and Giving Back: A Legitimization Perspective on SMEs and Philanthropy
The authors argue that more dynamic Small and Medium-sized Enterprises (SMEs) - i.e. those that are more entrepreneurially oriented, internationalized and high-performing - are also more likely to engage in philanthropy. Dynamic SMEs \"Stand out\" and thus have a greater need to build legitimacy with external stakeholders by engaging in philanthropy. They find support for their propositions in a representative sample of Lithuanian SMEs and applying structural equation modelling. They discuss how the transition context may affect their results and conclude with wider implications for entrepreneurship theory.