Abstract
International e-commerce firms (ECFs) face strategic decisions regarding the standardization or adaptation of market operations in host countries. While prior research has focused largely on website design and content, this study addresses a critical gap by examining the standardization of important online offers (e.g., assortment, price) and services (e.g., customer chats, payment options). Based on 1,921 standardization decisions by 207 leading ECFs in 68 host countries and drawing on institutional economics and isomorphism reasoning, this study investigates how general and added formal and informal institutional distance influences ECFs’ degree of standardization. The results show that institutional distances impact ECFs’ standardization decisions even though their role in online markets has been questioned. Specifically, added formal institutional distance emerges as the most influential factor for the standardization of both online offers and services. Online offers are also affected by formal and added informal institutional distance and are more difficult to adapt than online services. By distinguishing between ECFs’ online offers and services and examining the role of added institutional distances, this study contributes to the literature by addressing a previously neglected research area. The results provide practical guidance for managers considering institutional distances for ECFs and their international standardization decisions.
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