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

Mitsuhiro Fukuzawa, Ryosuke Sugie, Youngwon Park and Jin Shi
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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

Sustainability, 2022, vol. 14, issue 5, 1-21

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.

Keywords: IoT investment; IT investment; metrics of information system investment; Industry 4.0; Smart Factory; advanced manufacturing technology; digital transformation; lean management; Japanese company; case study (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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