How Uncertainty Avoidance, Power Distance and Indulgence Affect Social Commerce Expenditure? An Investigation Based on Facebook

Year 2016, Volume 4 - Issue 4, 403 - 421, 28.12.2016

Emre Yıldırım Merve Türkmen Barutçu

Abstract

The increasing popularity of social networking sites (SNS) in recent years paved the way for
the emergence of social commerce. As a subset of e-commerce, s-commerce establishes the
communication between companies and consumers through SNS and allows online shopping.
However, online shopping through s-commerce varies substantially between different regions.
The differences observed in consumer behaviour stem from the different cultural background
every society has. This study analyses the effects of Hofstede’s cultural dimensions;
uncertainty avoidance (UAI), power distance (PDI) and indulgence (ING), on s-commerce
expenditure. With this purpose, the total amount of online expenditure for 53 countries chosen
from different regions, their total number of internet and Facebook users, and data related to
their cultural dimensions have been collected. In an effort to better understand the current
state of s-commerce, annual average expenditure of per Facebook user in each country has
been calculated through total online expenditure. Correlation and regression analysis have
also been performed together with cultural dimensions. Following these findings, it has been
concluded while UAI and PDI reduce s-commerce expenditure, ING increases it.
Consequently, the findings demonstrate while consumer willingness to do online shopping
decreases in the context of uncertainty and risk; increases when safety is provided.

Keywords

social commerce, culture, uncertainty avoidance, power distance, indulgence

References

• Ayoun BM, and Moreo PJ (2008). The Influence of Cultural Dimension of Uncertainty Avoidance on Business Strategy Development: A Cross National Study of Hotel Managers. International Journal of Hospitality Management, 27, 65-75.