Role of national culture for digital transformation strategy implementation: The case of Ethiopian SME

Ethiopia's stride towards a digital economy is encapsulated in the “Digital Ethiopia 2025 strategy,” endorsed by the Council of Ministers on June 15, 2020. This strategy is pivotal to Ethiopia's development agenda and is crafted to resonate with the nation's cultural identity. In this comprehensive study, the intricate relationship between Ethiopia's national cultural identity and its digitalization efforts is examined. Through an in-depth analysis of data collected from 210 small and medium-sized enterprises (SMEs) located in Addis Ababa as well as other significant urban centers across the country, our findings reveal that national culture is not merely a background factor but a significant predictor of the success in digital adoption and implementation. The study also confirms the mediating role of digital marketing capability to strengthen the effect of national culture and digital transformation. Our study provides several actionable insights for enhancing digitalization strategies. Firstly, it underscores the importance of incorporating cultural education within digital literacy programs to ensure they resonate with local values and practices. Secondly, it suggests the integration of traditional Ethiopian values into the design and functionality of digital platforms, ensuring that these technologies are culturally congruent and readily accepted by users. These insights are crucial for policymakers, government officials, and other stakeholders who are at the helm of guiding Ethiopia's digital transformation journey in a way that aligns with and respects the nation's rich cultural heritage. Key words: National Culture, Hofstede Culture index, digital ethiopia 2015, digitalization strategy, Digital marketing capability DOI: 10.7176/JMCR/94-04 Publication date: January 30th 2025