This paper combines Hofstede's theory of cultural differences with exploration/exploitation theory in a culture, exploration, exploitation (CEE) model then uses the model to organise existing theory and research on the relationship between national culture and innovation. A literature review found near consensus on the theory about culture and exploratory innovation as captured in the CEE model but mixed empirical support. Future research on culture and innovation should be designed to account for the exploratory/exploitative distinction in both theory and methodology. The dearth of research on exploitative innovation and on how cultural differences are enacted in the operational processes of organisations should be remedied. The CEE model with it is widely agreed upon theoretical propositions drawing upon two highly influential theories provides an improved theoretical platform for ongoing research on culture and innovation.
- International management