Ride-hailing service platform creation and legitimation: an institutional entrepreneurship perspective

Purpose Drawing on institutional entrepreneurship theory, this study examines (1) how ride-hailing service markets are created and legitimized and (2) how the involved stakeholders (acting as institutional entrepreneurs) co-evolve to improve city connectivity. Design/methodology/approach Employing qualitative methods, this study engages thirty-one interviewees, including drivers, users, policymakers, and influencers. In addition to interview data, this study uses visual methods, online documents, and participant observation. Findings The findings shed light on policymakers’ struggles in managing the emerging digital technology-induced industry and illuminate the co-evolution of various actors in legitimizing the ride-hailing industry, delineating four distinct phases: introduction, local validation, expansion, and general validation. Originality/value This research enriches the institutional entrepreneurship theory by demonstrating the fluid boundaries between economic, political, and policy entrepreneurs, revealing that roles are more interconnected and overlapping than previously acknowledged. It introduces the concept that collective and adaptive actions by various actors are crucial for driving institutional change, moving beyond the traditional focus on individual entrepreneurs. By examining how ride-hailing platform operators navigate and shape multiple institutional orders to their advantage, the study highlights the dynamic interplay between enabling conditions and entrepreneurial actions within institutional theory.