Localization of Crowdfunding Platforms : The Influencing Role of Culture, Institutions and Geography

Abstract

This master thesis examines the role played by culture, geography and institutions onEuropean crowdfunding platform’s decision to localize their content towards international markets. The authors conducted a binary logistic regression analysis is based on 470 observations of platform-country dyads collected from 269 European crowdfunding platforms and supplemented by additional sources of macro level indicators. Of the eleven hypotheses, social trust, geographical distance, high-context culture, rule of law and the investment orientation on platform have an effect on the decision to localize the platforms. IT infrastructure and the cultural dimensions of individualism, uncertainty avoidance, as well as a compounded variable of cultural distance, did not impact the same decision. The study’s findings are limited contextually to European crowdfunding platforms offering lending, equity, donation and reward-based models. Other micro-factors or countries of operation may exhibit different patterns than what is presented in this thesis. The study is one of the first in the field of localization andcrowdfunding, opening up for new discussions and insights. The results constitute and challenge the pre-existing theory on website localization. This thesis’ findings suggest that the context of this research is of significant impact as cultural adaptation has been highlighted to be one of the key factors to succeed in foreign markets in other industries.