Cultural Dimensions and Consumption Values of Cross-Border Electronic Commerce: A Canonical Analysis

Abstract

The purpose of this research is to explore the fitting models for cross-border e-commerce by developing localized business strategies tailored to cultural factors. The study adopts Hofstede’s five cultural dimensions along with Sheth et al.’s five consumption value dimensions. A canonical correlation analysis is employed to identify the fitting relationships between cultural dimensions and consumer values. The targeting samples focus on the rapidly growing Southeast Asian economy. The results indicate differences in cultural dimensions among countries like Taiwan, Vietnam, Malaysia, Indonesia, and Myanmar. The canonical correlation analysis reveals fitting combinations for each region: Taiwan’s higher individualism, masculinity, and long-term orientation align with demands for functional, conditional, and emotional values in e-commerce. Vietnam’s high risk-taking propensity fits demands for conditional and epistemic values. Malaysia and Indonesia, with similar cultural profiles, are highly correlated with consumer demands in functional and emotional values, with Malaysia additionally emphasizing epistemic value. Myanmar’s high masculinity and long-term orientation correlate with demands for functional, emotional, and conditional values, while its low power distance links to demands for social and epistemic values. Overall, the study shows that there is no fixed correspondence between cultural dimensions and consumption values in e-commerce. Optimal configurations vary, emphasizing the importance of tailored strategies to promote e-commerce development across different regions.