The power of digital nativeness: Exploring how millennials mitigate psychic distance in cross-border electronic commerce

Abstract

CBEC has experienced significant growth, establishing itself as an important component of international trade. Behind this expansion, digitally native millennial consumers have been one of the driving forces. However, existing literature lacks a comprehensive understanding of the ways millennials leverage their digital traits in CBEC. To address this gap, we explore how millennials enhance their purchase intentions in CBEC through the novel concept of digital nativeness. Our research model, supported by generation cohort theory and construal level theory, was tested on 298 South Korean samples using partial least squares structural equation modelling (PLS SEM). Our study identifies digital nativeness as a key driver of digital engagement, which reduces psychic distance and enhance exploratory purchasing in CBEC. We also found that social and transactional distance significantly impact exploratory purchasing, while spatial and temporal distance do not. Theoretically, this paper outlines information power concept that highlights millennials' influence on CBEC growth. It also tackles the psychic distance paradox by positioning CBEC platforms as strategic tools designed for millennials. Managerially, it emphasizes to target millennials with tailored strategies based on prioritised psychic distance dimensions. It also suggests a harmonized global-local approach to enhance millennials’ engagement in CBEC.