Abstract
This paper draws on the framing perspective to examine the role of social context and entrepreneurs' framing strategies in establishing new venture legitimacy and how different dimensions of legitimacy evolve over time in new venture legitimation. Empirically, we used a qualitatively-based case study method to examine the legitimation of CreditEase in China's emerging peer-to-peer lending industry. Our findings lead us to argue that (1) entrepreneurs who are able to use different framing strategies based on changes in the social context are more likely to establish new venture legitimacy; and (2) new ventures that acquire sociopolitical legitimacy first are more likely to establish new venture legitimacy. Overall, we propose that framing involves three strategic actions: interpretation, translation, and communication. We also point out the required resources and skills for entrepreneurs to implement these actions. Our findings help provide a better understanding of China's peer-to-peer lending industry as well as important implications for research on framing strategies and organizational legitimacy.