Impact of Cultural Differences on CPFR Implementation

Hofstede’s framework for understanding national cultural differences is used to interpret differences when a large U.S. manufacturer implemented Collaborative Planning Forecasting and Replenishment processes and systems with retail partners in the U.S., Germany, China, and Poland. The research suggests that cultural differences impact the rollout life cycle. Our work suggests 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.