Does Investment in Digital Technologies Yield Digital Business Value? The Digital Investment Paradox and Knowledge Creation as Enabling Capability

Christian Riera, Junichi Iijima

2018

Abstract

This paper explores whether the investments in Digital Technologies relate to Business Value in organizations and the role of Knowledge Creation. To evaluate this, data collected from Japanese Small and Medium Enterprises from “Competitive IT Strategy SME Selection 100” list of 3 years was analysed by correlation, regression and general linear model analysis. The direct effect that investment in Digital Technologies had on Business Value was observed for Learning & Growth objectives. The influence that the four processes of Knowledge Creation (SECI Model) had was explored and found that Combination process was positively related with the investment in Digital Technologies for Financial and Learning & Growth objectives. Externalization had a negative relationship with the investment in Financial objectives. Although not verified statistically, a trend showed organizations with higher Knowledge Creation Capabilities gained higher benefits from investment in Digital Technologies as the investment increased and vice versa. Although the limitations of this study are related to the population characteristics and responses’ reliability, it was considered that the potential insights were valuable enough to overcome such limitations. With this empirical study the concern of “Digital Investment Paradox” is raised and the debate is initiated with Knowledge Creation as an enabling capability.

Paper Citation

in Harvard Style

Riera C. and Iijima J. (2018). Does Investment in Digital Technologies Yield Digital Business Value? The Digital Investment Paradox and Knowledge Creation as Enabling Capability. In Proceedings of the 10th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management (IC3K 2018) - Volume 3: KMIS; ISBN 978-989-758-330-8, SciTePress, pages 208-215. DOI: 10.5220/0006958202080215

in Bibtex Style

@conference{kmis18,
author={Christian Riera and Junichi Iijima},
title={Does Investment in Digital Technologies Yield Digital Business Value? The Digital Investment Paradox and Knowledge Creation as Enabling Capability},
booktitle={Proceedings of the 10th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management (IC3K 2018) - Volume 3: KMIS},
year={2018},
pages={208-215},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006958202080215},
isbn={978-989-758-330-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 10th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management (IC3K 2018) - Volume 3: KMIS
TI - Does Investment in Digital Technologies Yield Digital Business Value? The Digital Investment Paradox and Knowledge Creation as Enabling Capability
SN - 978-989-758-330-8
AU - Riera C.
AU - Iijima J.
PY - 2018
SP - 208
EP - 215
DO - 10.5220/0006958202080215
PB - SciTePress