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Moderating effect of national attributes and the role of cultural dimensions in technology adoption takeoff

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Original languageEnglish
Pages (from-to)5-25
JournalManagement Research News
Volume32
Issue number1
DOIs
Publication statusPublished - 2009
Publication typeA1 Journal article-refereed

Abstract

Purpose: Due to the globalization of business, a better understanding of companies’ international multi-cultural market environment is needed in the search for competitive advantage. This study focuses on the influence of national cultural dimensions on the evolution of national innovation adoption over time. The paper considers the moderating effects of national wealth, population density, and illiteracy rate on the role of cultural dimensions in the timing of innovation takeoff in national markets. Methodology and approach: The empirical study investigates 137 national innovation adoption time series; the dependent variable being the time it takes for innovation adoption to take off. The independent variables are Hofstede’s five cultural dimensions and the moderating variables are GDP, population density, and illiteracy rate. Findings: The outcome of the study shows that cultural dimensions have a greater influence on takeoff time in countries with highly developed economies, dense populations, and low illiteracy rates. The study also shows that especially the cultural dimension of individualism has a significant context independent influence on takeoff dynamics whereas masculinity has no such effect. Research limitations and implications: The paper provides evidence that the influence of cultural dimensions may be more complex than previously believed. Contribution of the research to the academic community especially lies in results regarding moderation effect of GDP, population density and illiteracy. Other independent and moderating variables could provide useful subjects for further research. Practical implications: The results of this study could assist companies conducting business in cross-national settings in planning their international operations in such areas as designing marketing promotions and deciding the entry order into national markets. Especially useful the results are in pre-takeoff phase of the evolution of innovation adoption. Originality and value of paper: The paper extends our understanding of the relationship between the national cultural dimensions and the early evolution of innovation adoption. Especially, incomplete understanding of the cross-national dynamics of the innovation adoption takeoff is scrutinized and the findings support earlier research that cultural dimensions affect adoption dynamics. Additionally, the study demonstrates that the influence of cultural dimensions may be dependent on and moderated by other national attributes.

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