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Effects of Quality Control Activities and Customers’ ICT Investment on Digitalization in Manufacturing Firms in Southeast Asia

Author

Listed:
  • Yasushi Ueki

    (Institute of Developing Economies)

  • Masatsugu Tsuji

    (Kobe International University)

  • Nuchjarin Intalar

    (Thammasat University)

  • Somrote Komolavanij

    (Panyapiwat Institute of Management)

Abstract

This study investigates effects of customer–supplier relationship and quality control activities on the adoption of ICTs, data sharing within and between firms, and data use. Supply chain performance depends on collaborations between customers and suppliers. A firm that has adopted an ICT will encourage its partner firms to adopt a compatible ICT to benefit fully from its own ICT investment. Thus, the firm and its partner firms who are collaborative and willing to adopt ICTs are likely to shift to digital-based collaborations. Because small group activities for continuous improvement will develop organizational routines for information sharing within and between firms, firms promoting such activities are like to adopt ICTs. This study examines these hypotheses by using survey data collected in Lao PDR, Thailand, and Vietnam in 2017. The results of two-stage least squares (2SLS) regressions show that (1) customers’ ICT investments and quality control circles significantly affect a firm’s own ICT investment decisions or planning and (2) that firms that have adopted ICTs share data within and between firms and make effective use of data. These results indicate that (1) the adoption and benefits of ICTs will be transmitted along production networks even if firms introduce ICTs in response to their customers’ investments in ICTs and (2) ICT promotion policies, in tandem with support for quality control enhancement, will improve the performance of supply chains.

Suggested Citation

  • Yasushi Ueki & Masatsugu Tsuji & Nuchjarin Intalar & Somrote Komolavanij, 2023. "Effects of Quality Control Activities and Customers’ ICT Investment on Digitalization in Manufacturing Firms in Southeast Asia," The Review of Socionetwork Strategies, Springer, vol. 17(1), pages 25-53, April.
    • Handle: RePEc:spr:trosos:v:17:y:2023:i:1:d:10.1007_s12626-023-00135-1
    DOI: 10.1007/s12626-023-00135-1
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