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The Role of Culture in Developing Disruptive Innovation in Domestic Firms
Abstract
National culture influences how people perceive the world, and subsequently, what actions they take. Research has shown that this also follows in the actions taken by firms that reside in those national cultures. The actions identified in this paper look at domestic firms’ pursuit of disruptive innovation. Disruptive innovations are unique types of innovation that require different thinking from the firm. We discuss the two ways a firm can pursue disruption and how culture might affect that pursuit. Specifically, Hofstede’s (1980) five cultural dimensions of uncertainty avoidance, power distance, long-term orientation, individualism, and masculinity will provide a guiding light on the values needed for a firm to develop disruptive innovations. Additionally, it will be further argued of the coexistence of disruptive business models and the opportunities of the bottom of the pyramid markets.
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