IDEAS home Printed from https://ideas.repec.org/p/zbw/itse22/265659.html
   My bibliography  Save this paper

Relationship between Innovation and Corporate Performance in Japanese SMEs by Two-stage Panel Data Analysis: Focusing on the Joint Effect of ICT and R&D

Author

Listed:
  • Matsuzaki, Taisuke
  • Shigeno, Hidenori
  • Taher, Sheikh Abu
  • Tsuji, Masatsugu

Abstract

The innovation theory tends to focus on innovation capabilities and estimate how these promote innovation. However, the final aim of innovation is not innovation itself but enhancing profits or sales. To complete the innovation theory, it is required to show whether innovation achieved contributes to improve in business performances. A further focus of this paper is on the role of ICT and R&D in the innovation process. ICT plays a vital role in absorbing information from outside the firm, while R&D is essential for assimilating obtained information with existing resources to create something novel. This paper focus on the joint effect of these two factors. The estimation is based on the twostage provit IV panel model and authors' own data of 2012 and 2017. The dependent variables are innovation in the first equation and sales in the second. The results obtained show that (i) Innovation enhances sales; (ii) R&D is significant for innovation; (iii) ICT is not significant for neither of equations; and (iv) the cross term of R&D and ICT is significant for innovation, implying ICT is an enabler of innovation. This is a novel result of the paper.

Suggested Citation

  • Matsuzaki, Taisuke & Shigeno, Hidenori & Taher, Sheikh Abu & Tsuji, Masatsugu, 2022. "Relationship between Innovation and Corporate Performance in Japanese SMEs by Two-stage Panel Data Analysis: Focusing on the Joint Effect of ICT and R&D," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265659, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse22:265659
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/265659/1/Matsuzaki-et-al.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Masatsugu Tsuji & Hiroki Idota & Yasushi Ueki & Hidenori Shigeno & Teruyuki Bunno, 2016. "Connectivity in the Technology Transfer Process among Local ASEAN Firms," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 10(3), September.
    2. Effie Kesidou & Adam Szirmai, 2008. "Local knowledge spillovers, innovation and export performance in developing countries: empirical evidence from the Uruguay software cluster," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 281-298.
    3. Josh Lerner & Julie Wulf, 2007. "Innovation and Incentives: Evidence from Corporate R&D," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 634-644, November.
    4. Brynjolfsson, Erik, 2013. "Wired for Innovation: How Information Technology Is Reshaping the Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262518611, April.
    5. Todo, Yasuyuki & Matous, Petr & Inoue, Hiroyasu, 2016. "The strength of long ties and the weakness of strong ties: Knowledge diffusion through supply chain networks," Research Policy, Elsevier, vol. 45(9), pages 1890-1906.
    6. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    7. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, vol. 39(7), pages 1261-1269, July.
    8. Leonard-Barton, Dorothy, 1988. "Implementation as mutual adaptation of technology and organization," Research Policy, Elsevier, vol. 17(5), pages 251-267, October.
    9. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    10. Hau L. Lee, 2018. "Big Data and the Innovation Cycle," Production and Operations Management, Production and Operations Management Society, vol. 27(9), pages 1642-1646, September.
    11. Yasushi Ueki & Masatsugu Tsuji, 2019. "The Roles of ICTs in Product Innovation in Southeast Asia," The Review of Socionetwork Strategies, Springer, vol. 13(1), pages 79-95, June.
    12. Tsuji, Masatsugu & Ueki, Yasushi & Shigeno, Hidenori & Bunno, Teruyuki & Idota, Hiroki, 2018. "ICT and Two Categories of R&D in the Innovation Process among Firms in ASEAN Countries Based on Firm-level Survey Data," 29th European Regional ITS Conference, Trento 2018 184970, International Telecommunications Society (ITS).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Taisuke Matsuzaki & Hidenori Shigeno & Teruyuki Bunno & Hiroki Idota & Masatsugu Tsuji, 2023. "The Relationship Between Innovation and Corporate Performance in Japanese SMEs by Two-Stage Panel Data Analysis: Focusing on the Joint Effect of ICT and R&D," The Review of Socionetwork Strategies, Springer, vol. 17(1), pages 55-71, April.
    2. Shigeno, Hidenori & Bunno, Teruyuki & Abu Taher, Sheikh & Tsuji, Masatsugu, 2020. "R&D and ICT in the Innovation Process of Japanese Innovative SMEs: Panel Data Analysis Based on Firm-Level Survey Data," ITS Conference, Online Event 2020 224875, International Telecommunications Society (ITS).
    3. Shigeno, Hidenori & Tsuji, Masatsugu & Matsuzaki, Taisuke & Shinohara, Sobee, 2017. "ICT Use, Connectivity, and Innovation Capability in Japanese SMEs," 28th European Regional ITS Conference, Passau 2017 169498, International Telecommunications Society (ITS).
    4. Tsuji, Masatsugu & Ueki, Yasushi & Shigeno, Hidenori & Bunno, Teruyuki & Idota, Hiroki, 2018. "ICT and Two Categories of R&D in the Innovation Process among Firms in ASEAN Countries Based on Firm-level Survey Data," 29th European Regional ITS Conference, Trento 2018 184970, International Telecommunications Society (ITS).
    5. Yasushi Ueki & Masatsugu Tsuji, 2019. "The Roles of ICTs in Product Innovation in Southeast Asia," The Review of Socionetwork Strategies, Springer, vol. 13(1), pages 79-95, June.
    6. Masatsugu Tsuji & Hiroki Idota & Yasushi Ueki & Hidenori Shigeno & Teruyuki Bunno, 2016. "Connectivity in the Technology Transfer Process among Local ASEAN Firms," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 10(3), September.
    7. Boeker, Warren & Howard, Michael D. & Basu, Sandip & Sahaym, Arvin, 2021. "Interpersonal relationships, digital technologies, and innovation in entrepreneurial ventures," Journal of Business Research, Elsevier, vol. 125(C), pages 495-507.
    8. Shigeno, Hidenori & Matsuzaki, Taisuke & Ueki, Yasushi & Tsuji, Masatsugu, 2023. "The Effect of the Covid-19 Pandemic on the Innovation Process of Small and Medium-sized Regional Firms," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 278018, International Telecommunications Society (ITS).
    9. Tieng Kimseng & Amna Javed & Chawalit Jeenanunta & Youji Kohda, 2020. "Sustaining Innovation through Joining Global Supply Chain Networks: The Case of Manufacturing Firms in Thailand," Sustainability, MDPI, vol. 12(13), pages 1-17, June.
    10. Ailian Zhang & Mengmeng Pan, 2020. "“Smart Process” of Medical Innovation: The Synergism Based on Network and Physical Space," IJERPH, MDPI, vol. 17(11), pages 1-17, May.
    11. Francesco Venturini & Ana Rincon-Aznar & Dr Michela Vecchi, 2013. "ICT as a general purpose technology: spillovers, absorptive capacity and productivity performance," National Institute of Economic and Social Research (NIESR) Discussion Papers 416, National Institute of Economic and Social Research.
    12. Young Bong Chang & Vijay Gurbaxani, 2013. "An Empirical Analysis of Technical Efficiency: The Role of IT Intensity and Competition," Information Systems Research, INFORMS, vol. 24(3), pages 561-578, September.
    13. Strauss, Hubert & Samkharadze, Besik, 2011. "ICT capital and productivity growth," EIB Papers 6/2011, European Investment Bank, Economics Department.
    14. Brynjolfsson, Erik, 2011. "ICT, innovation and the e-economy," EIB Papers 8/2011, European Investment Bank, Economics Department.
    15. Cowan, Robin & Sanditov, Bulat & Weehuizen, Rifka, 2011. "Productivity effects of innovation, stress and social relations," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 165-182, August.
    16. Hätönen, Jussi, 2011. "The economic impact of fixed and mobile high-speed networks," EIB Papers 7/2011, European Investment Bank, Economics Department.
    17. Idota, Hiroki & Ueki, Yasushi & Bunno, Teruyuki & Shinohara, Sobee & Tsuji, Masatsugu, 2014. "Role of ICT in the innovation process based on firm-level evidence from four ASEAN economies: An SEM approach," 25th European Regional ITS Conference, Brussels 2014 101397, International Telecommunications Society (ITS).
    18. Speckbacher, Gerhard & Wabnegg, Markus, 2020. "Incentivizing innovation: The role of knowledge exchange and distal search behavior," Accounting, Organizations and Society, Elsevier, vol. 86(C).
    19. Idota, Hiroki & Bunno, Teruyuki & Ueki, Yasushi & Shinohara, Sobee, 2015. "Empirical Analysis of Factors Promoting Product Innovation in ASEAN Economies: Focusing on Absorptive Capacity and ICT Use," 26th European Regional ITS Conference, Madrid 2015 127150, International Telecommunications Society (ITS).
    20. Andersson, Martin & Kusetogullari, Anna & Wernberg, Joakim, 2021. "Software development and innovation: Exploring the software shift in innovation in Swedish firms," Technological Forecasting and Social Change, Elsevier, vol. 167(C).

    More about this item

    Keywords

    Open innovation; instrumental variable; mediation; cross term; enabler;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:itse22:265659. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.itseurope.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.