This paper analyses culture as a determinant of technology adoption in a developing
country. While the literature discusses the influence of culture upon economic growth,
little attention has been paid to the mechanisms at the micro level. Therefore, we postulate
that culture plays a crucial role in hindering or fostering the diffusion of innovation, a key
trigger of the engine of growth. This empirical study uses the Ethiopia Rural Household
Survey to disentangle between individual cultural traits, namely, ethnicity and religion,
and the cultural homogeneity of the environment as co-determinants of fertilizer adoption.
We apply a multivariate survival frailty model and find a positive effect on the diffusion
of fertilizer. Firstly, social norms, proxied by ethnicity, provide a better explanation
for the role of culture, than religion, as usually posited in the literature. Secondly, a
homogeneous ethnic environment accelerates the diffusion of fertilizer, while a diverse
religious background fosters adoption.