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The Impact of ICTs and Business Strategy on Innovation Activities: Empirical Evidence From Japanese SMEs

The Impact of ICTs and Business Strategy on Innovation Activities: Empirical Evidence From Japanese SMEs
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Author(s): Hiroki Idota (Kindai University, Japan), Sheikh Abu Taher (Jahangirnagar University, Bangladesh)and Masatsugu Tsuji (Kobe International University, Japan)
Copyright: 2021
Pages: 24
Source title: Competitive Drivers for Improving Future Business Performance
Source Author(s)/Editor(s): Carlos Martins (Lusíada University of Porto, Portugal)and Paula Rodrigues (Lusíada University of Porto, Portugal)
DOI: 10.4018/978-1-7998-1843-4.ch009

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Abstract

This research explores factors of innovation and clarifies the effects of information and communication technologies (ICTs) on innovation process. Analysis is based on a mail survey conducted in February 2012 to March 2012 on 3,959 Japanese SMEs. The number of valid responses was 647 (16.3%) and is used as a sample for the analysis. Based on the data, logit analysis is employed for product and process innovation to answer the following three research questions: (1) What are factors promoting innovation? (2) How ICTs affect innovation? and (3) Which affect SMEs with higher ICT use to realize innovation? As a result, (1) the factors such as R&D expenditures, leadership of top management, motivation of employees, ICT index, effects of ICTs are extracted. (2) Sharing information and shortening the R&D process are the effects which ICTs perform to innovation. (3) These effects are greater to SMEs with higher ICT index. The new finding of this chapter lies in results such that ICTs affect innovation through sharing information and shortening the R&D period.

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