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An Exploratory Case Study on the Metrics and Performance of IoT Investment in Japanese Manufacturing Firms

Author

Listed:
  • Mitsuhiro Fukuzawa

    (Faculty of Business Administration, Seikei University, 3-3-1 Kichijoji-Kitamachi, Tokyo 1808633, Japan)

  • Ryosuke Sugie

    (Graduate School of Humanities and Social Sciences, Saitama University, 255 Shimo-Okubo, Sakura-ku, Saitama 3388570, Japan)

  • Youngwon Park

    (Graduate School of Humanities and Social Sciences, Saitama University, 255 Shimo-Okubo, Sakura-ku, Saitama 3388570, Japan)

  • Jin Shi

    (Graduate School of Humanities and Social Sciences, Saitama University, 255 Shimo-Okubo, Sakura-ku, Saitama 3388570, Japan)

Abstract

This study investigates the objectives, approval process, decision criteria, metrics, and performance of the Internet of Things (IoT) system investment in four Japanese manufacturing firms through exploratory case analysis. This study conducted semi-structured interviews and several workshops with practitioners to collect, confirm, supplement, and verify the interviews data and the researcher’s interpretations. The study clarifies the actual status of investment activities in IoT systems and the essential common issues. In addition, this study shows that IoT investments in Japanese companies improve production activities’ efficiency. However, collaboration among divisions and departments other than production is not sufficient. This paper also contributes to constructing an analytical framework for comprehensively clarifying IT system investment decision-making and investment effects. These findings will be one of the reference points of the IoT system investment project and will contribute to the recent digital transformation movement in many manufacturing firms.

Suggested Citation

  • Mitsuhiro Fukuzawa & Ryosuke Sugie & Youngwon Park & Jin Shi, 2022. "An Exploratory Case Study on the Metrics and Performance of IoT Investment in Japanese Manufacturing Firms," Sustainability, MDPI, vol. 14(5), pages 1-21, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2708-:d:759204
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    Cited by:

    1. Jin Shi & Youngwon Park & Ryosuke Sugie & Mitsuhiro Fukuzawa, 2022. "Long-Term Partnerships in Japanese Firms’ Logistics Outsourcing: From a Sustainable Perspective," Sustainability, MDPI, vol. 14(10), pages 1-13, May.
    2. Young Won Park & Junjiro Shintaku, 2022. "Sustainable Human–Machine Collaborations in Digital Transformation Technologies Adoption: A Comparative Case Study of Japan and Germany," Sustainability, MDPI, vol. 14(17), pages 1-20, August.
    3. Rita Martinho & Jéssica Lopes & Diogo Jorge & Luís Caldas de Oliveira & Carlos Henriques & Paulo Peças, 2022. "IoT Based Automatic Diagnosis for Continuous Improvement," Sustainability, MDPI, vol. 14(15), pages 1-28, August.
    4. Young Won Park & Paul Hong, 2022. "A Research Framework for Sustainable Digital Innovation: Case Studies of Japanese Firms," Sustainability, MDPI, vol. 14(15), pages 1-13, July.

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