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How ICTs Raise Manufacturing Performance: Firm-level Evidence in Southeast Asia


  • Tomohiro MACHIKITA

    (Inter-Disciplinary Studies Center, Institute of Developing Economies, Japan)

  • Masatsugu TSUJI

    (Graduate School of Applied Informatics, University of Hyogo, Japan)

  • Yasushi UEKI

    (Bangkok Research Center, IDE/JETRO, Thailand)


This paper examines the effects of information and communication technologies (ICTs) on business performance, using firm-level data obtained through a questionnaire survey in four ASEAN countries (Indonesia, The Philippines, Thailand and Vietnam). Sources of information and new technologies exchanged via ICTs by firms are also explored to investigate the mechanism behind ICT adoption. Empirical results verify that the introduction of ICT to reorganize business processes is significantly correlated with business performance, in particular the development of export markets and improvement of production management. ICTs facilitate access to information and technologies accumulated in in-house departments and joint-venture (JV) affiliates of the respondent firms. There are considerable differences between multinational companies (MNCs)/JVs and local firms. MNCs/JVs make use of information and technologies obtainable via ICTs from their own R&D departments, JVs established with local partners and foreign-owned suppliers/customers to improve factory management, mostly for product quality improvement and production cost reduction. In contrast, local firms interconnect their own R&D departments via ICTs to enhance their business performance in broader areas than MNCs/JVs, including the development of export markets.

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  • Tomohiro MACHIKITA & Masatsugu TSUJI & Yasushi UEKI, 2010. "How ICTs Raise Manufacturing Performance: Firm-level Evidence in Southeast Asia," Working Papers DP-2010-07, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:dp-2010-07

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    References listed on IDEAS

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    Cited by:

    1. Ariel Herbert FAMBEU, 2016. "Déterminants De L’Adoption Des Tic Dans Un Pays En Développement : Une Analyse Économétrique Sur Les Entreprises Industrielles Au Cameroun," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 159-186.
    2. Adel Ben youssef & Walid Hadhri & Hatem Mhenni, 2014. "Adoption of Information and Communication Technologies and New Organizational Practices in the Tunisian Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 34(4), pages 2237-2252.
    3. Yoshifumi Fukunaga & Arata Kuno, 2012. "Toward a Consolidated Preferential Tariff Structure in East Asia: Going beyond ASEAN+1 FTAs," Working Papers PB-2012-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. OUM Sothea & Narjoko Dionisius & Charles HARVIE, 2014. "Constraints, Determinants of SME Innovation, and the Role of Government Support," Working Papers DP-2014-10, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Mohamed Kossaï & Patrick Piget, 2012. "Utilisation des technologies de l'information et des communications (TIC) et performance économique des PME Tunisiennes :une étude économétrique," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(3), pages 305-328.

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