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.
