The influence of Hofstede’s cultural dimensions on digitalization: a cross-country investigation

Purpose The purpose of this paper is to investigate the association between Hofstede’s cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance, long-term orientation and indulgence) and the adoption of digitalization. Design/methodology/approach The sample in this study includes 73 countries during the year 2016. Proxies for digitalization are collected from the Digital Adoption Index provided by the World Bank for the year 2016. National cultural dimensions are gathered from the respective countries of interest, and their values can be found on the website link (www.Hofstede-insights.com/country-comparison-tool?countries=). Findings The findings of this study demonstrate that power distance exhibits a negative association with digitalization, as indicated by the overall digitalization index and its specific applications in business and among individuals. By contrast, individualism, uncertainty avoidance, long-term orientation and indulgence are positively related to digitalization. Finally, masculinity is insignificantly associated with digitalization. These empirical results remain stable after using the level internet use as an alternative proxy for digitalization. Practical implications These findings may have implications for researchers, policymakers and managers. With respect to researchers, the findings highlight the importance of informal pressures, through national culture, in explaining digitalization effort at country level. With respect to policymakers, countries characterized by high power distance should implement strategies that may enhance competitiveness, put in place reward systems and minimize hierarchy that encourage firms to embark on digital transformation. Government policies and programs should put more emphasis on changing cultural beliefs in society and the programming of minds to promote innovative behavior in the long run. With respect to managers of multinational firms, they should take into account countries’ culture when choosing where to locate their businesses and if they intend to implement high-tech projects or initiate digital transformation process. Originality/value With respect to researchers, the findings highlight the importance of informal pressures, through national culture, in explaining digitalization effort at country level.