Gaining acceptance and trust in highly regulated industries
How do new companies and products gain acceptance and trust in highly regulated industries? Two examples are the gambling and life science industries, where innovation must be balanced against strict regulations and user safety. This question is explored in a new doctoral thesis from Halmstad University.
For companies in regulated industries, success is about more than just a good business idea, product or service. They have to navigate a complex environment where new ideas meet established regulations and where safety and innovation need to go hand in hand. Jackson Kinyanjui, PhD student at Halmstad University, has mapped out how this process works in his doctoral thesis.
Four paths towards emergence and development
Jackson Kinyanjui has identified four different ways in which new firms and industries can co-evolve: benign, supervenient, radical and nominal. Each path requires its own strategies to manage the difficult balance between innovation and compliance.
“In my thesis, I propose ways in which new and existing firms can assess the context in which they seek to introduce new products or different forms of novelty. One important thing is that legitimacy needs to be built from the inside out – first within your own organisation and then in the external environment”, says Jackson Kinyanjui.
Jackson Kinyanjui.
Tools for change
The research, based on both individual and comparative case studies, shows that successful leaders use a variety of strategies to gain acceptance in volatile business environments. These include creating feedback loops, aligning with existing norms where necessary, using familiar cues that create trust, and being consistent in their communication and actions.
For policy makers and authorities, Jackson Kinyanjui’s thesis offers a framework to evaluate and support the co-emergence of new industries and firms in a way that promotes both innovation and safety.
Although Jackson Kinyanjui’s research focuses on the gambling and life sciences industries, he says the findings have broader implications:
“The principles of building legitimacy are relevant in any context where new endeavours are to be established in complex and regulated environments. It’s about striking the right balance between strategy, environment and innovation.”
Text: Lovisa Essunger
Top photo: AI generated by Halmstad University
Portrait photo: Magnus Karlsson
About the doctoral thesis
Title of the thesis: Competing for Legitimation
The research was conducted as part of the LNETN project, an international research initiative funded by the Marie Skłodowska-Curie Grant.
