Teruyuki Bunno

An Empirical Analysis of Organizational Innovation Generated by ICT in Japanese SMEs

Small and medium-sized enterprises (SMEs) play an important role in Japanese economic development by supplying high-quality parts to the manufacturing sector. In fact, the superior quality of Japanese products can largely be attributed to SMEs. In the information age, Japanese SMEs must meet the challenges of global competition in order to survive. In this context, Japanese SMEs need to increasingly rely on information and communication technology (ICT) as a basis for organizational restructuring to improve performance and efficiency in all aspects of business activities.

A comparative analysis of organizational innovation in two Japanese SMES groups generated by information communication technology

This paper focuses on factors which promote organizational innovation through ICT use by applying the index based on AHP. In so doing, two groups, one developed SMEs and the other underdeveloped, are compared in one model. Organizational innovations generated by the introduction of ICT are classified by the following four types: (i) the number of PCs owned, (ii) number of PCs connected to networks such as LAN, (iii) extent to which software that contributes to the efficient utilization of managerial resources has been implemented, and (iv) Internet use. The index of organizational innovation generated by above ICT introduction is calculated by the AHP (Analytical Hierarchical Process).

How Social Media Enhances Product Innovation in Japanese Firms

A large number of firms use social media as new communication tools for obtaining information on consumer’s needs and market for developing new goods and services. Authors’ previous research found social media use promotes product innovation based on questionnaire data of Japanese firms. However, it was not clear whether social media effected directly on product innovation. This paper introduces a new variable constructed by achievement of product innovation and social media use and utilizes this as a dependent variable. The estimation methods conducted in the previous research are employed for probit analysis. This study finds all estimations have the same results. In addition, this paper also examines what kind of effect of social media is important for product innovation. The effects of social media such as obtaining trends and customer’s needs, and opening the FAQ site are found to be useful for achieving product innovation.

Characterizing R&D and HRD in the innovation process of Japanese SMEs: analysis based on field study

ABSTRACT To analyse the nature of R&D and HRD among Japanese SMEs, the Japan Team selected the following three firms from the manufacturing industry, depending upon size in terms of the number of employees, types of products, orientation toward innovation and so on. The three firms selected were Dynic, Kyokko Electrics (Kyokko for short) and Maeda Precision Manufacturing (Maeda for short). In the context of formal or informal R&D, Dynic and Kyokko own R&D centres, while Maeda does not, which is due to the size of firms. This study analyses their R&D and HRD organizational structures and implementations and identifies factors which determine the nature of their R&D and HRD. The factors promoting innovation extracted based on the in-depth interviews are (1) the size of firm, (2) types of product and production, (3) seeds of innovation, (4) attitude toward risk and (5) learning process. The common factor acting as the basis for the firms’ R&D structure was identified as ISO9001 which three firms commonly introduced and applied. Their HRD are also different, which are due to (1) level of new employees and (2) the size of firm. The policy implications for further promotion of innovation are also discussed.

The Effectiveness of Social Media for Business Activities in Japanese Firms

A large number of firms use social media for various business activities. This paper clarifies how social media has become effective to sales in Japanese firms. To this purpose, the following are addressed: (i) whether social media is useful for company activities, (ii) what kinds of business activities are affected using social media, and (iii) how social media improves the final outcomes of sales for firms. This study uses data of business activities and social media conducted in 2014. Probit analysis and structural equation modeling (SEM) are employed. Probit analysis clarifies the relationships between the effects of social media and its use in sales. The SEM model clarifies the relationships among the effects of social media use in business. In the SEM, a model is examined by taking sales caused by use of social media as an explained variable, while the explanatory variables are the first and intermediate effects of social media. The results indicate that social media is effective for business activities such as promoting sales. This study may help to promote social media in Japanese firms.

INNOVATION PROCESS OF NATURAL-RESOURCE-BASED FIRMS IN FOUR ASEAN ECONOMIES: AN SEM APPROACH

This paper focuses on natural-resource-based firms in four ASEAN economies, such as Vietnam, Indonesia, The Philippines, and Thailand. These countries have relative advantage in natural-resource-based industries, since they have affluent endowed resources and been making use them for their export and growth strategies. In this study, the innovation process in natural-resource-based industries in these countries are examined in comparison with other assembling and processing industry by focusing factors enhance product as well as process innovation. Those are summarized as (i) Technology, (ii) Organization learning including QM, cross functional team, (iii) ICT use, and (iv) external linkages such as MNCs, local and public organizations, universities. This study employs SEM (Structural equation model) in order to analyze the causal relationships not only among above four latent variables but also between these and innovations. Keywords: internal capability, external linkage, organization learning, capital goods, ICT use, SEM (Structural equation model)

Connectivity in the technology transfer process among local ASEAN firms

This study investigates the mediating role of human factors in absorbing externally available information into product innovations of firms in four Southeast Asian countries. This absorption process consists of two sub-processes, namely the acquisition process from which outside information is employed to the firms innovative capacity and the transformation process in which innovative capacity creates innovation. This study attempts to identify human elements essential to indigenous innovative capacity building. As such elements may help the absorption process, this study focused on personnel with experience of working with multinational enterprises (MNEs) and indigenous employees of the firm. As for the transforming capability, organizational learning process, including quality control (QC) and cross-functional teams are examined. The analysis indicates that MNEs have the largest impact as external linkages and for the connectivity with external linkages such as MNEs and public organizations and universities, the best mediators are top management and factory managers who have working experience with MNEs, whereas indigenous employees such as local engineers, managers, and line leaders are the best mediators for connectivity with locals.

Product Innovation and ICT Use in Firms of Four ASEAN Economies

In order to achieve successful innovation, firms have to elevate their capability for innovation. ICT becomes one of essential tools of business management. The aim of this papers to examine the causal relationship between ICT use and innovation capability. Based on survey data from four ASEAN economies of Indonesia, the Philippines, Thailand, and Vietnam, this study examines what kind of ICT use such as SCM, CAD/CAM, SNS and so on, has been introduced by firms, and how it enhances internal innovation capability and contributes to achieve innovation. In so doing, to make the concept of internal innovation capability more tractable for empirical analysis, AHP (Analytical Hierarchy Process) was employed to construct an index of internal innovation capability. By using instrumental variable probit estimation (or two Stage Least Square: 2SLS), the following results are obtained: (1) ICT significantly influences to enhance internal innovation capability; and (2) internal innovation capability promotes innovation.