The Effect of National Culture on the Adoption of Innovations

Studies on the adoption of innovations by companies generally include micro-level and meso-level variables. This study adds to the literature by investigating the role of national culture (i.e. a macro-level variable) to explain differences in adoption rates across countries. In particular, we investigate the effects of the five Hofstede culture dimensions and the culture dimensions proposed by Hall on country adoption rates. Hypothesized effects were tested using a large-scale empirical study concerning the adoption of Enterprise Resource Planning (ERP) software by mid-size companies covering ten European countries. Results indicate that variables describing national culture have a significant influence on the country adoption rates.