Institutional entrepreneurs' roles in the international market expansions: evidence from the ride-hailing platforms

Drawing on the institutional theory-legitimacy theoretical lens, we explore how culture shapes the ride-hailing service industry and how the ignorance of cultural-cognitive legitimacy impacts digital platforms’ survival and their foreign market exploration. We employed a qualitative case study method that involved 22 respondents from a multi-category of industry actors. The in-depth interview is supported by the vignette derived from secondary data. Findings reveal that international market exploration causes uncertainties due to the local consumption culture and consumers’ expectations. Thus, ride-hailing operators must consistently adapt to local culture while offering new services abroad. Additionally, we reveal two opposing directions of the legitimation process within the ride-hailing industry, which differ from the past literature. Our key message to service industry practitioners is to recognize that consumers are active agents in shaping the new market. Also, the importance of recognizing cultural heterogeneity in the East and West; and within Asia.