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Studies of illegitimate organizations have failed to present consistent definitions and to recognize that illegitimate organizations persist. Drawing on the emerging organizational stigma literature, I separate recoverable event-stigma from nonrecoverable core-stigma—an extreme form of the poorly defined construct of illegitimacy. I examine the nature of core-stigma, the role of conflicting external audience evaluations that determine and express this stigma, and some organizational outcomes and responses. I end by proposing some implications for building a greater understanding of these and other illegitimate organizations and a possible agenda for future research.
Bryant A. Hudson (Tue,) studied this question.