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Covariance structure analysis of innovation and ICT use among Japanese innovative SMEs

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  • Idota, Hiroki
  • Bunno, Teruyuki
  • Tsuji, Masatsugu

Abstract

One of the common features of innovative SMEs identified from our previous surveys and in-depth interviews is innovation capability accumulated inside the firm, which enables them to create new products which meet customer needs and to cooperate with the other firms. The factors that SMEs achieve innovation are complex, and the causal relationships between factors have not been sufficiently clarified yet. This paper attempts to clarify the innovation process using covariance structure analysis, in particular focusing on the role ICT. Seven hypotheses are demonstrated by two models. The results obtained are as follows: (i) top management's participation and employee's motivation in the innovation process promote the effect of introducing ICT; (ii) this effect of ICT use raises innovation capability; in particular ability to connect external linkages; (iii) ICT use, innovation capability and external linkages enhance innovation activity; and (iv) effect of ICT use and innovation capability promote innovation directly. Thus this paper identifies that the effect of introducing ICT promotes innovation, and it is indispensable for innovation in Japanese SMEs.

Suggested Citation

  • Idota, Hiroki & Bunno, Teruyuki & Tsuji, Masatsugu, 2013. "Covariance structure analysis of innovation and ICT use among Japanese innovative SMEs," 24th European Regional ITS Conference, Florence 2013 88463, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse13:88463
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    File URL: https://www.econstor.eu/bitstream/10419/88463/1/773894500.pdf
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    References listed on IDEAS

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    1. repec:dau:papers:123456789/10093 is not listed on IDEAS
    2. Idota, Hiroki & Minetaki, Kazunori & Bunno, Teruyuki & Tsuji, Masatsugu, 2011. "Empirical analysis of internal social media and product innovation: Focusing on SNS and social capital," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52152, International Telecommunications Society (ITS).
    3. Eve Caroli & John Van Reenen, 2001. "Skill-Biased Organizational Change? Evidence from A Panel of British and French Establishments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1449-1492.
    4. L. Becchetti & David Bedoya & L. Paganetto, 2003. "ICT Investment, Productivity and Efficiency: Evidence at Firm Level Using a Stochastic Frontier Approach," Journal of Productivity Analysis, Springer, vol. 20(2), pages 143-167, September.
    5. Damaskopoulos, Panagiotis & Evgeniou, Theodoros, 2003. "Adoption of New Economy Practices by SMEs in Eastern Europe," European Management Journal, Elsevier, vol. 21(2), pages 133-145, April.
    6. Idota, Hiroki & Bunno, Teruyuki & Tsuji, Masatsugu, 2010. "Open Innovation Success Factors by ICT Use in Japanese Firms," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 16, International Telecommunications Society (ITS).
    7. Benn Lawson & Danny Samson, 2001. "Developing Innovation Capability In Organisations: A Dynamic Capabilities Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 377-400.
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    Cited by:

    1. Radu Bucea-Manea-Tonis & Rocsana Tonis (Bucea-Manea), 2016. "Web Platform for Romanian SMEs Networking," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 5(4), pages 38-45, December.

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    Keywords

    ICT; Innovation; innovation capability; external linkages; covariance structure analysis;
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