ABSTRACT
The stakeholder engagement and innovation literature has received considerable academic attention. However, the subject of stakeholder legitimacy perceptions which impact the willingness and ability of stakeholders to engage with entrepreneurial ventures have not been fully explored in the entrepreneurship literature. This research fills the knowledge gap by reviewing literature on venture legitimacy, firm innovation, and stakeholders. Accordingly, the study discusses the perception of five stakeholder groups on firm legitimacy and suggests how they impact innovation in developing economies. At the end of the chapter, we highlight the critical issues of legitimacy perceptions, innovation, and stakeholders and point out potential avenues for further research.
