Institutional distance and foreign firms’ live streaming use in the host market

J. Jason Lu Jin A, X. Xiaopeng Lai, M. Dong Meitong, L. Wang and Y. Yaqin Zheng
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L. Wang: Audencia Business School

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Abstract: While online transactions through live streaming are rising rapidly for international exchanges, we understand little about why foreign firms vary in their use of live streaming on the digital platform when operating in host markets. Drawing on institutional theory, our study investigates how institutional distance affects foreign firms' live streaming use as a digital operation strategy in the host market. Using a unique longitudinal dataset consisting of 3,158 product-month observations from a Chinese digital platform, our findings reveal that while legal distance has a positive effect on live streaming use, digital distance has a negative impact. Moreover, firm age and platform experience significantly moderate the roles of institutional distance. These findings provide novel insights into platform-based operation strategies in international markets.

Keywords: Platform experience; Digital distance; Legal distance; Live streaming use; Institutional distance (search for similar items in EconPapers)
Date: 2026-01
New Economics Papers: this item is included in nep-cul, nep-mac and nep-sbm
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Published in Journal of World Business, 2026, 61 (2), pp.101696. ⟨10.1016/j.jwb.2025.101696⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05460935

DOI: 10.1016/j.jwb.2025.101696

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