Creative Destruction Within and Across Countries: Do Culture and Connectedness Matter?
This study investigates the relationship of national culture and global connectedness with the creative destruction process. Hypotheses are developed regarding the extent of a nation’s adoption of creatively destroying technologies based on cultural dimensions of uncertainty avoidance and cultural tightness (vs. looseness), and on global connectedness dimensions of depth and breadth. An analysis of agricultural biotechnology adoption in 58 nations provides broad and robust support for the theoretical framework and shows significance for interaction between tightness and dimensions of global connectedness. These findings provide insight into the role of intranational informal institutions and global connectedness in shaping complex interactions between technological change and industrial evolution.