Open Innovation Success Factors by ICT Use in Japanese Firms

The innovation by an independence principle is a limit in Japanese firm today. The expectation for the open innovation that positively uses outside resources on business has risen in Japanese firm. In open innovation, the strategy that expands sharing information and using the resource from supplier to customer for the innovation is needed. Therefore, the use of ICT is indispensable for the promotion of the open innovation. In this paper, we discussed how to utilize ICTs for open innovation activities in order to achieve more effective innovation outcomes in Japanese Medium-sized Enterprises. We conducted a mail survey for Japanese Medium-sized Enterprises in industries such as manufacturing, construction, and information and telecommunication in January 2010. Based on their replies, we applied the some logistic regression analyses. As results, the following points are clarified. Firms which achieve open innovation are enhancing the innovation by cooperating and exchanging information with the following entities: (i) affiliate companies which have the excellent technological knowhow; (ii) customers which locate inside or outside of the region; and (iii) firms in the same industry inside of the same region. The firms cultivate mutual trust for a long time and jointly develop frequently the new products and services. And they have frequently exchanged the customer needs, new release information of the rival companies and a high-tech trend with each other. They use CTI and SCM to use information and knowledge for designing and developing a new product and service. Moreover, it can be confirmed that the firm which top management is familiar with ICT and exercises the leadership for ICT use. In addition, the firm not only introduced ICT but also reformed organizational structures, systems, and company's rules at the same time. These analysis results will provide useful suggestions for SMEs to practice open innovation in the future.