Sailing through uncertainty: The impact of geopolitical risks on technology adoption in U.S. corporations—A corporate culture lens

Abstract

Amid escalating geopolitical tensions, this study investigates how these risks reshape corporate technology adoption strategies in the U.S., focusing on the intersection of geopolitics, technology, and organizational dynamics. Drawing on the Resource-Based View (RBV) theory, we analyzed 32,940 earnings call transcripts from September 1, 2020, to June 30, 2023, using advanced text-based big data analytics, including Word2vec and Structured Topic Modeling (STM). The findings reveal that geopolitical risks significantly influence technology adoption decisions, driving advancements in critical domains such as electric mobility, artificial intelligence, digital currencies, intelligent shipping, and carbon abatement technologies. While these risks pose challenges, they also serve as catalysts for innovation and strategic realignment. Corporate culture emerges as a key moderating factor, with firms possessing a strong technology-oriented culture demonstrating greater adaptability in aligning technology adoption with external pressures. By integrating geopolitical risk considerations into the RBV framework, this research highlights the complex interplay between external uncertainties and internal capabilities, emphasizing the strategic value of an adaptive corporate culture in navigating geopolitical challenges and leveraging technological opportunities.