Skip to main content
Log in

Information Technology and the Performance of Japanese SMEs

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

This paper examines the impact of investment in information technology (IT) on the performance of Japanese firms. My findings imply that there is a positive and statistically significant relationship between IT and firm profitability and innovation, but only for small firms. These results underscore the importance of investment in IT for small companies. The acceptance of IT by this sector is fundamental to the success of structural adjustment in the Japanese economy.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Baily, M. N. and R. Lawrence, 2001, ‘Do We Have A New E-Conomy?’, NBER Working Paper, No. 8243.

  • Acs, Zoltan and David B. Audretsch, 1988, ‘Innovation in Large and Small Firms: An Empirical Analysis’, American Economic Review 78(4), 678-690.

    Google Scholar 

  • Breschi, Stefano, Franco Melerba and Luigi Orsenigo, 2000, ‘Technological Regimes and Schumpeterian Patterns of Innovation,’ Economic Journal 110 (April), 388-410.

    Google Scholar 

  • Brynjolfsson, E. and L. M. Hitt, 2000, ‘Beyond Computation: Information Technology, Organizational Transformation and Business Performance’, Journal of Economic Perspectives 14(4), 23-48.

    Google Scholar 

  • Cohen, W. M. and R. C. Levin, 1989, ‘Empirical Studies of Innovation and Market Structure’, in R. Schmalensee and R. D. Willig (eds.), Handbook of Industrial Organization, Vol. 2, North-Holland, Ch. 18.

  • Gordon, R. J., 2000, ‘Does the “New Economy” Measure up to the Great Inventions of the Past?’, Journal of Economic Perspectives 14(4), 49-74.

    Google Scholar 

  • Greenan, N. and J. Mairesse, 1996, ‘Computers and Productivity in France: Some Evidence’, NBER Working Paper, No. 5836.

  • Jorgenson, D. W., 2001, ‘Information Technology and the U.S. Economy’, American Economic Review 91(1), 1-32.

    Google Scholar 

  • Lichtenberg, F. R., 1995, ‘The Output Contributions of Computer Equipment and Personnel: A Firm-Level Analysis’, Economics of Innovation and New Technology 3(3), 201-217.

    Google Scholar 

  • Mairesse, J., N. Greenan and A. Topiol-Bensaid, 2001, ‘Information Technology and Research and Development Impacts on Productivity and Skills: Looking for Correlations on French Firm Level Data,’ NBER Working Paper, No. 8075.

  • Matsudaira, J., 1998, ‘The Return to Information Technology Investment in Japan’, FRI Review 2(4), 43-57 (in Japanese).

    Google Scholar 

  • Oliner, S. D. and D. E. Sichel, 2000, ‘The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?’, Journal of Economic Perspectives 14(4), 3-22.

    Google Scholar 

  • Siegel, D., 1997, ‘The Impact of Computers on Manufacturing Productivity Growth: A Multiple-Indicators, Multiple-Causes Approach’, Review of Economics and Statistics 79(1), 68-78.

    Google Scholar 

  • Small and Medium Enterprise Agency, 1999, White Paper on Small and Medium Enterprises in Japan, 1999, Printing Bureau, Ministry of Finance.

  • Small and Medium Enterprise Agency, 2000, White Paper on Small and Medium Enterprises in Japan, 2000, Printing Bureau, Ministry of Finance.

  • Symeonidis, George, 1996, ‘Innovation, Firm Size and Market Structure: Schumpeterian Hypotheses and Some New Themes,’ OECD Economics Department Working Paper, No. 161.

  • Wakasugi, Ryuuhei, Masato Yachi, Yoshikazu Wada and Fumihiko Koyota, 1997, ‘R&D, Innovation, and Economies of Scale: A Puzzle’, Studies In Intrenational Trade and Industry, No. 23, Research Institute of International Trade and Industry.

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Morikawa, M. Information Technology and the Performance of Japanese SMEs. Small Business Economics 23, 171–177 (2004). https://doi.org/10.1023/B:SBEJ.0000032023.11566.4b

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/B:SBEJ.0000032023.11566.4b

Keywords

Navigation