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Institutional Elasticity as a Significant Driver of IT Functionality Development

In: Managing Innovation in Japan

Author

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  • Chihiro Watanabe

    (2-12-1 W 9-49 Ookayama)

Abstract

Institutions drive innovation and stimulate broad diffusion. Not surprisingly, national systems of innovation are influenced by their institutional elasticity in response to changing market conditions. As nations move from industrial to information-based societies, a key factor governing institutional elasticity is how institutions integrate IT. Since IT functionality is intimately connected with institutional dynamics, unlike simple manufactured products such as refrigerators, IT's specific functionality is formed through dynamic interaction with institutional systems. Consequently, institutional elasticity is a critical factor in the functionality of IT and its subsequent self-propagating behavior. This paper analyzes one possible mechanism of IT functionality formation, with special attention to the interaction of the technology with institutional systems. Reprinted from Technological Forecasting and Social Change 71, No. 7, C. Watanabe, R. Kondo, N. Ouchi, H. Wei and C. Griffy-Brown, Institutional Elasticity as a Significant Driver of IT Functionality Development, pages: 723–750, copyright (2004), with permission from Elsevier.

Suggested Citation

  • Chihiro Watanabe, 2009. "Institutional Elasticity as a Significant Driver of IT Functionality Development," Springer Books, in: Managing Innovation in Japan, chapter 3, pages 31-56, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-89272-4_3
    DOI: 10.1007/978-3-540-89272-4_3
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