Website Localization Strategies to Promote Global E-Commerce: The Moderating Role of Individualism and Collectivism
Information Systems
Wu, Tailai; Peng, Chih-Hung; Sia, Choon Ling; Lu, Yaobin
Published in MIS Quarterly, March 2024
How do foreign firms bridge with local consumers in the world of e-commerce? Professor Choon-ling Sia from the Department of Information Systems and his co-authors find the importance of tailoring websites for local users and its impact on website loyalty with three key website localisation strategies: web similarity, web distinctiveness, and web prestige.
Some of these strategies differ across social cultures. The study suggests that web distinctiveness and web prestige are more effective in collectivistic societies like China, Japan, and Korea than in individualistic cultures like the United States, Germany, and Australia. Therefore, websites emphasising how the foreign company's products or services can stand out from competitors and showcase esteemed awards and positive feedback from the locals will be more likely to gain website loyalty in collectivistic cultures. Conversely, web similarity strategies—such as using images of local employees, native language, and resonating with local slogans—have consistent effects in both social settings.
Website designers are recommended to consider cultural differences when creating online platforms for foreign companies. They should evaluate the extent of website localisation to evoke more positive responses from local consumers.
Prof. Choon-ling Sia, Associate Dean (Research and Faculty)
Choon Ling Sia is Professor at the City University of Hong Kong and AIS Fellow (2015). He received his Ph.D. degree from the National University of Singapore. He served as Director of Center of Social Media Marketing and Business Intelligence at the City University of Hong Kong from 2012 till 2021. He is serving, or has served, on the editorial boards of Information Systems Research, MIS Quarterly, Journal of the AIS, IEEE Transactions on Engineering Management, Journal of Global Information Management, Information and Management, and Journal of Database Management. His research interests include electronic commerce, social media, cross-cultural issues in information systems, knowledge management, distributed work arrangements, and computer-mediated communication.
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