Legitimation and institutionalization of managerial practices. The role of organizational rhetoric

This paper analyzes how rhetoric is associated with the legitimation and institutionalization of managerial practices. Since rhetoric both shapes and reflects an actor's legitimacy assumptions, rhetoric can be used as an indicator of the institutionalization or cognitive legitimacy of managerial practices. Drawing on and expanding previous research on rhetorical theory and verbal accounts, this paper links argumentation structure and form with processes of institutionalization. The empirical analysis draws on a large text corpus of data from two German banks, both of which implemented drastic downsizing measures. The results show that the process of institutionalization is related to both a decline in argument diversity and a shift from defensive to acclaiming arguments.