Comparative analysis for Japanese Private Sector IT investment and Productivity The roles of IT investments for corporate growth and profit

Abstract

Japanese IT investment has stagnated. Though some Japanese companies are investing in IT, this does not represent offensive IT investment. I analyzed what kind of IT investment would lead company profit, growth, and what kind of IT investment made reluctance for companies. I found out empirical relations between IT investment and corporate productivity. Analyses of productivity revealed low productivity among some business types and fields, where significantly fewer benefits were being produced by IT investment. Based on these results, I showed how productivity improvement supported by IT investment encourages company profit and growth. These results indicated further discussion for government policy implications.