Do Cultural Differences Matter in IT Implementation?: A Multinational’s Experience with Collaborative Technology

As multinational firms increasingly adopt collaborative technology with supply chain partners in other countries, their implementation strategies need to accommodate cultural differences. This paper draws upon Hofstede’s framework for understanding national cultural characteristics to propose differences in implementation timing and strategy. These propositions are tested with a case study involving a large U.S. based multinational’s implementation of Collaborative Planning, Forecasting and Replenishment (CPFR) with partners in four different countries: U.S., Germany, China, and Poland. This research suggests that cultural differences impact the rollout life cycle for CPFR. The authors recommend that (1) implementation strategies should match national culture, (2) implementation timing can be a function of national culture, and finally (3) customer readiness assessments for CPFR rollout should include an assessment of national cultural differences.