Toward More Responsive Organizations: Openness to Change and Culture Preservation in Subsistence and Developing Economies

Adoption of innovations by the people of a nation typically contributes to its economic development. Cultural resistance to new products and technologies sometimes hinders widespread adoption. The resulting tension may result in a number of outcomes within a society. This paper uses behavioral theory in organizations and the economic development literature to explore ways in which local cultures in subsistence economies negotiate the adoption of innovations. Propensity to adopt innovations and resistance to cultural change are two dimensions that are proposed to impact the strategies that societies use to balance the competing interests of economic development and cultural integrity. Secondary data are used to explore the general relationship between various types of IT investment and economic development across a variety of nations, and a taxonomy is offered as a framework for future research.