Cultural distance and cross-border diffusion of innovation: a literature review

Abstract

PurposeThe objective of this study is to advance the understanding of the connection between cultural distance and the cross-border diffusion of innovations by conducting a systematic review and analysis of previous literature.Design/methodology/approachThis study involved a literature review. A total of 35 articles published in ABS journals were identified from key management, international business and marketing journals. The articles were analyzed by the methodologies and findings presented.FindingsThe literature review shows that the adoption and diffusion of innovation and new products are bound to be deeply influenced by cultural distance. Specifically, national cultures influence the willingness of consumers to buy new products at both the individual and organizational levels; organizational culture plays a key role in the process of launching new products and diffusing innovations to the market. However, existing studies and their findings are fragmented and inconsistent. Controversial views remain regarding the impact of national cultural dimensions on the diffusion of innovation at the individual and organizational levels.Originality/valueThis is the first systematic review of the literature specifically focusing on the impact of cultural distance on the cross-border diffusion of innovation. In identifying the research gaps and limitations of extant studies, the authors point to avenues for future research to develop a more integrated research agenda for marketing, management and international business research.