Building legitimacy and distinctiveness on Nigerian-Canadian transnational ventures’ websites

ABSTRACT Achieving legitimacy in several markets is crucial for transnational ventures. Moreover, the literature on competitive strategy suggests that distinctiveness from competitors is a major source of competitive advantage for ventures. Nevertheless, our knowledge is sparse on how transnational ventures use claims to build legitimacy and distinctiveness through their website, which is increasingly the main point of contact with customers and other stakeholders. This research gap is especially relevant as an online presence plays a more important role than ever for ventures thriving to survive and grow. Thus, we analyzed (1) claims collected from 20 Nigerian-Canadian transnationals’ websites, classified by argument types, and (2) survey data from a 20-member review panel that assessed legitimacy and distinctiveness of those websites. Applying ranking, clustering and regression analysis, we found that not only legitimacy and distinctiveness are crucial for transnational ventures, but that they are also positively correlated. Hence, transnational ventures should design their websites to communicate their unique qualities, display customer reviews, provide comprehensive product information, and articulate their value proposition with the help of videos and images and pay attention to cybersecurity. Finally, we conclude with research propositions and managerial recommendations.