Abstract
The integration of robotics has created significant opportunities while simultaneously introduced labour market challenges. The aim of this exploratory research is to investigate the impact of robotic adoption on unemployment in a cross-country context. By presenting a novel theoretical framework that integrates the Innovation Diffusion Theory (IDT) and the Absorptive Capacity Theory (ACT), and analysing a panel data from 33 countries, we show that countries with stronger absorptive capacity are better positioned to convert robotics adoption into employment gains. We further test whether national culture, proxied by Hofstede's cultural dimensions, moderates this relationship, uncovering a substantial heterogeneity across six cultural factors. This provides a practical blueprint for policymakers with clear evidence that uniform approaches to robotics adoption are unlikely to be effective and robotics policies must be tailored to local cultural norms, institutional capabilities, and national readiness. The policymaker should prioritise capability building alongside adjustment measures that support inclusive labour-market transitions.
•This study evaluates how industrial robotics adoption affects unemployment using a comprehensive panel dataset covering 33 countries.•Results show the impact of robotics on unemployment is heterogeneous across countries, as national culture strongly moderates this relationship.•Integrated framework combines Innovation Diffusion Theory and Absorptive Capacity Theory.•Countries with higher R&D investment andinnovation strength are better able to translate adoption of robotics into employment growth.•How cultural and institutional readiness facilitate robotic adoption offers an evidence-based framework to policy makers for designing strategies.