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What Hinders Digital Communication? Evidence from foreign firms in Japan

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  • TANAKA Kiyoyasu

Abstract

Digital technology such as virtual meetings is key to communication and collaboration for multinational firms, but it is unclear what hinders their digital communication. This paper estimates barriers to digital communication by using a firm-level survey on foreign firms in Japan that faced an exogenous shock to adopt digital technology for communication extensively during the COVID-19 pandemic. Efficient communication depends on existing barriers to internal communication in firm organization and external communication with clients and customers. The results show that foreign firms perceive a greater issue of digital communication in both internal and external communication channels. Contrary to common assertions, digital communication is perceived as a greater issue in remote-work feasible sectors. Thus, digital technology does not eliminate existing barriers to face-to-face communication.

Suggested Citation

  • TANAKA Kiyoyasu, 2022. "What Hinders Digital Communication? Evidence from foreign firms in Japan," Discussion papers 22058, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:22058
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    1. Tomiura, Eiichi & Kumanomido, Hiroshi, 2023. "Impacts of inter-firm relations on the adoption of remote work: Evidence from a survey in Japan during the COVID-19 pandemic," Japan and the World Economy, Elsevier, vol. 68(C).
    2. Ishii, Kayoko & Yamamoto, Isamu & Nakayama, Mao, 2023. "Potential benefits and determinants of remote work during the COVID-19 pandemic: Evidence from Japanese Household Panel Data," Journal of the Japanese and International Economies, Elsevier, vol. 70(C).

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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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