We report on our numerical studies of the Axelrod model for social influence in small-world networks. Our simulation results show that the topology of thenetwork has a crucial effect on the evolution of cultures. As the randomness of the network increases, the system undergoes a transition from a highly fragmented phase to a uniform phase. We also find that the power-law distribution at the transition point, reported by Castellano et al, is not a critical phenomenon; it exists not only at the onset of transition but also for almost any control parameters. All these power-law distributions are stable against perturbations. A mean-field theory is developed to explain these phenomena.