IIAI Letters on Business and Decision Science

Simulation Modeling of a Conceptual Model for Supply Chain Risks in Japan’s Automobile Industry

Toko Sasaki, Akira Nagamatsu — Mon, 05 Feb 2024 00:00:00 +0000

Japan’s automobile industry suffered enormous losses because of the 2011 Tohoku earthquake. Four years earlier, the 2007 Niigata Chuetsu offshore earthquake had damaged Riken’s Kashiwazaki plant in Niigata, impeding operations among most Japan’s automobile manufacturers. Five years after the 2011 Tohoku earthquake, many plants, including semiconductor manufacturer Renesas and automotive parts supplier Aisin Kyushu in Kumamoto were affected by the 2016 Kumamoto earthquake, the impact affected entire Japan’s automobile industry. Thus, production stoppages at lower-tier suppliers have often affected nearly every Japan’s automobile manufacturer.

Therefore, the purposes of this study are to describe how disasters affected the supply chain network in Japan’s automobile industry, to build a conceptual model that reproduces concentration and consolidation within the supply chain structure, and to compare the propagation of the supply chain disruption using several models.

Proposal of a Dual System Model for the Consensus Building Process in the Problem Formulation Process in Groups

Hiroyuki Furuya, Takaaki Hosoda, Tokuro Matsuo — Mon, 16 Sep 2024 00:00:00 +0000

This paper introduces a model incorporating consensus building into group problem-sharing pro-cesses, addressing the challenges of problem setting in groups. In today’s complex world, distin-guishing and defining problems are particularly challenging for groups, due to subjective percep-tions and differing personal views that lead to incompatible perceptions. According to Imayoshi et al., problems are inherently subjective. BEAR et al. suggest that the difficulty in problem set-ting is influenced by heterogeneous information, objectives, and cognitive structures, acting as barriers to effective problem recognition. This model aims to identify these inhibitors and eluci-date the complexities involved in collective problem setting, highlighting the need for alignment and appropriate consensus within diverse groups.

Community Settlement of Migrant Entrepreneurs

Osamu Nakajima — Mon, 16 Sep 2024 00:00:00 +0000

Migration within Japan is now a move to urban areas to seek economic affluence. It is becoming the behavior of independent business entrepreneurs and those seeking to fulfill their lifestyles. The migration of young people who aim to become migrant entrepreneurs and use the regional development cooperative program is particularly notable. This paper examines the "Sakawa Invention Lab" case in Sakawa Town, Kochi Prefecture, to see how their settlement in the region is occurring. From this study, it can be inferred that their settlement in the region is caused by their participation in educational initiatives with the local community.

Business Model Proposal for Agriculture and Tourism Business Sectors Supported by ICT System in Nepal through Systematic Business Analysis Process

Pabitra Chaudahry, Koji Okada — Mon, 05 Feb 2024 00:00:00 +0000

Nepal is the least developed country in the world. Most people live in rural areas that have poor economic conditions. With limited job opportunities within the country, there is a massive outflow of labor overseas, and we must depend on remittances for our daily lives. To resolve this problem, an effective business model is needed to create sufficient job opportunities and improve the economic situation. Many researchers suggest that improvement of the agricultural sector and investment in tourism would facilitate job opportunities and assist the importance of an ICT-based business model; however, none of them proposed a model with a systematic methodology. Therefore, a series of business analyses were conducted to investigate the overall scenario. First, we conducted an (i) PESTLE analysis, (ii) SWOT analysis followed by case studies, and (iii) 3C analysis. The following results were obtained: (i) PESTLE analysis and (2) SWOT show major strengths in “Agriculture and Tourism”; a massive mobile connection rate exceeding the total population and a high primary education completion rate, indicate the possibility of agribusiness and tourism businesses, but the demand and supply chain is fragmented due to a lack of information. To understand the actual situation, I investigated two specific areas Dang, which is known as the grain basket of Nepal, and Pokhara City, a melting point of tourist destination for mountaineering and adventures activities along with enormous trekking sites holding massive consumption agricultural product (iii) 3C analysis helped to figure out the key success factor of ICT businesses to link production and consumption sites. Therefore, I proposed a mobile application-based business model using the business model canvas. Our goal is to link the demand of tourists and farmers food supply and connect them to technical support for modern farming techniques for mass production and cultivation by using ICT technology such as mobile applications.

A Case Study on the Internal Process Re-Engineering of Traditional Industry from a Resource-based Perspective

Cheyu HUNG, Sheng-Pin Wu, Chien-Chih Wang, Tai-Yu Lin — Mon, 16 Sep 2024 00:00:00 +0000

Traditional industries face significant operational pressures in increasing global market competi-tion. Many companies are adopting business process reengineering (BPR) to navigate these chal-lenges and enhance operational efficiency and competitiveness. This study examines the appli-cation of BPR in a traditional manufacturing company, focusing on its impact on management information systems (MIS), operational costs, and employee morale. Employing a case study approach, the research analyzed the reengineering of the company's internal processes, which included integrating MIS with operational procedures under the ISO 9001:2015 framework. Key steps involved system analysis, personnel interviews, and the implementation of strategic im-provements aimed at streamlining operations. The reengineering efforts led to a 30% increase in MIS utilization, a reduction in operational staff by two full-time equivalents, and a decrease in processing time by over 12 working days per year. Furthermore, there was an 80% reduction in average monthly non-performing losses and significant enhancements in employee morale. The findings demonstrate that BPR can significantly improve the efficiency and cost-effectiveness of traditional industries. The standardization of management practices and the transparent opera-tional model were well-received by staff, fostering a culture of continuous improvement. These results suggest that similar strategies could benefit other companies in traditional sectors looking to modernize their operations and improve competitiveness.

Analysis of Consumers' Willingness to Pay for Eco-Friendly Insulation Tape and Its Influencing Factors

Chien-Chih Wang, Bo-Yi He, Che-Yu Hung — Mon, 16 Sep 2024 00:00:00 +0000

The incineration of traditional PVC insulation tape can generate pollutants such as hydrogen chloride, dioxins, and furans, which are significant environmental and ecological damage sources. According to the Stockholm Convention, emissions of pollutants like dioxins and furans should be reduced, and their elimination should be sought wherever feasible. Therefore, developing eco-friendly PVC that is acceptable to consumers is an important issue. This study focuses on a newly developed eco-friendly self-amalgamating insulation tape, exploring factors affecting consumers' willingness to pay through questionnaire design and data analysis. A total of 304 valid question-naires were collected randomly. The results show a positive correlation between consumers' en-vironmental knowledge, green consumption attitude, and green consumption behavior. Regard-ing willingness to pay, 60% of respondents will spend an additional 60 NTD to purchase eco-friendly self-amalgamating insulation tape. The findings of this study can provide manufacturers with an assessment of quality costs and suggest that the government should promote environ-mental knowledge among the public, as well as provide necessary subsidies to manufacturers to create a home with ecological quality jointly.

What Triggers Migrant Entrepreneurs to Move to Depopulated Areas?

Osamu Nakajima, Hidekazu Iwamoto — Mon, 16 Sep 2024 00:00:00 +0000

This study aims to clarify the factors that determine migrant entrepreneurs' decision to migrate to depopulated areas. According to Florida [1], the aggregation of individuals possessing creative talents catalyzes enhancing the overall creativity within a region. In this study, authors focus on the “trigger” for migrants to move to rural areas, that is, the motivation of migrants. To extract the factors that lead respondents to migrate, this study adopted semi-structured interviews with six respondents, asking them to tell their life stories about how they migrated and started their businesses. The authors adopted a co-occurrence network method using KH Coder (KHC) text mining to find commonalities in the results of migration and starting a business. The authors found that the pivotal factor lies in the feasibility of migrant entrepreneurs to fulfill their desire. In sparsely populated areas, personal introductions from closely associated acquaintances play a significant role in the migration decision-making process.

Proposal of an SEIR Model Considering Inter-group Human Movement among Large Scale of Groups

Hiroyoshi Matsumoto, Yusuke Yamauchi, Shimpei Matsumoto — Sun, 15 Sep 2024 00:00:00 +0000

This study proposes an epidemic model using person trips and treats the SEIR model as the re-search model, which extends the SIR model. The study analyzes the actual spread of the Omicron strain of the coronavirus, which occurred throughout Japan around the beginning of the fiscal year 2022. After obtaining the epidemic model based on the SEIR model, the study divides a single epidemic area into four groups to reproduce diverse infections through person trips. Using the records of the number of infected individuals and commuters in Saitama, Tokyo, Kanagawa, and Chiba prefectures from January to April 2022, the study estimates the parameter values of infection rate, recovery rate, and mobility rate. The study discusses epidemic control by applying the estimated parameter values and compares the newly infected data of Saitama, Tokyo, Kana-gawa, and Chiba prefectures used in parameter estimation with the infection data to evaluate the utility of the model. Additionally, the study examines the simulation results by varying the mo-bility rates through several patterns.

Predicting Success Factors in Social Issue Crowdfunding Projects Using a Logistic Regression Analysis

Kazuki Munehisa, Shimpei Matsumoto — Mon, 16 Sep 2024 00:00:00 +0000

This This study aims to provide quantitative evidence regarding the success factors of purchase-based crowdfunding for regional revitalization. While several studies have investigated success factors in crowdfunding, insufficient research has analyzed the success factors in the context of regional revitalization. Given the limited scope of regional revitalization, the success factors for projects may differ, making it an important research topic to conduct unique analyses focused on regional revitalization. This study proposes a predictive method for the success or failure of crowdfunding aimed at regional revitalization. The findings will be beneficial for utilizing crowd-funding in the context of regional revitalization.

Influences of Prolonged Internships on University Students’ Attitudinal Shifts within the Hospitality and Tourism Sectors

Masashi Ishitani — Mon, 16 Sep 2024 00:00:00 +0000

This research presents an analytical exploration of the effects of extended internships on the vocational interests and self-assurance of university students within the hospitality sector. Em-ploying a questionnaire-based survey methodology, this study captures the perspectives of stu-dents engaged in year-long internships at lodging establishments. The findings reveal a signifi-cant increase in interest towards the accommodation and tourism industries post-internship, with 88.9% of participants reporting enhanced enthusiasm. Remarkably, all respondents indicated an elevated sense of confidence in their professional capabilities. The study further examines the interns’ post-graduation career intentions and their self-reported proficiency in English within a workplace context, with the outcomes underscoring the valuable role that long-duration intern-ships play in the preparatory stages of hospitality industry careers.

Survey Analysis of Students' Attitudes in PBL Activities

Takaaki Hosoda, Koji Okazaki — Mon, 05 Feb 2024 00:00:00 +0000

This paper shows the results of a questionnaire survey conducted in 2023 for students enrolled in PBL courses at the Advanced Institute of Industrial Technology. The purpose of this survey was to develop a unified evaluation index for PBL activities as part of the Institutional Research (IR) activities of the Centre for Research and Education of Highly Skilled Professionals. As a result, it was found that they tend to avoid extremely difficult themes due to their anxiety of completing the course while the students value the originality and novelty of the PBL themes. Furthermore, they expect their PBL themes to be practical by discovering it by their own, rather than being given by someone else. Also, they prefer team-based work to individual work. The PBL faculty members are expected to build good relationships with the students and provide a guidance based on their expertise. While the students want to keep a relationship with the graduate school for the future, it is unclear what type of relationship they need. It would be a future work to be investigated. Finally, the results shows that their expectations for competencies to be acquired through PBL activities were high enough across the board and indicates the willingness of the students to acquire competencies through PBL activities.

Influence Sources of Wearable Healthcare Devices Adoption and Diffusion

Yinghsuan Chao, LiChieh Kuo, HERSEN DOONG — Mon, 16 Sep 2024 00:00:00 +0000

The rising need for efficient health monitoring systems presents a significant challenge, empha-sizing the importance of enhancing personal health management and reducing healthcare system burdens. To address this and achieve health optimization and preventive care goals, governments and healthcare providers have actively promoted the development of Wearable Healthcare De-vices (WHDs), a cornerstone for implementing advanced health monitoring technologies. These devices are celebrated for their potential to improve health outcomes, personalize healthcare, and reduce healthcare costs. However, the anticipated success of these technological advancements has not been fully realized, evidenced by their limited adoption and diffusion among the general population.
In response to this issue, our research utilizes the Innovation Diffusion Theory to explore the influential internal and external factors related to the communication strategies of wearable healthcare devices, including the roles of mass media and word-of-mouth interpersonal commu-nication. Employing a case study approach focused on WHD adoption, this study applies an an-alytical framework comprising the internal influence and external influence. This framework is utilized to elucidate the determinants of WHD adoption and diffusion across various stages. The findings of this research aim to provide the government, healthcare providers, and relevant stake-holders with critical insights for crafting more effective promotional strategies for wearable healthcare devices, thereby ensuring a more efficient, personalized, and sustainable healthcare service delivery.

Understanding Convention Attendees' Motivations in the Post-COVID Era

Hidekazu Iwamoto, Tokuro Matsuo — Mon, 16 Sep 2024 00:00:00 +0000

This study aims to verify convention attendees' motivations in the post-corona era and discuss the differences between foreign and Japanese attendees for onsite participation. The MICE in-dustry was a significant contributor to the global economy because of supporting a wide range of industries such as hospitality services, transportation, and entertainment. Online questionnaire surveys were conducted to convention attendees at three conventions. The survey results of this study show that even if the corona is over, not all participants will shift to on-site participation. In addition to placing more importance on "educational purposes" than Japanese participants, foreign participants placed more importance on "avoidance from daily life" than Japanese partic-ipants. Creating more value for local participation is necessary than at previous conventions.

Survey of the Act on the Protection of Personal Information in Japan and International Standard Framework for De-identification

Sanggyu Shin — Mon, 05 Feb 2024 00:00:00 +0000

This paper discusses the law definitions of de-identification, re-identification, anonymization, and pseudonymization based on Japan’s amendment act of the Act on the Protection of Personal Information. It also introduces the current international standardization trends in de-identification, including the standardized framework ISO/IEC 27559 and ITU-TSG17 X.1148, and related international standards, ISO/IEC 20889, etc. Personal data de-identified by anonymization or pseudonymization must be de-identified adequately before being used as part of publicly available big data sets. Dealing with Big Data and sensitive personal data requires knowledge and technical competence to maintain the appropriateness of that data. Many companies are implementing Big Data projects and need a sound legal understanding to develop in line with international standards to remain compliant with the ever-increasing regulatory risk requirements.

Analysis of Factors Influencing the Decision-Making of the Elderly

Eriko Musashi, Takaaki Hosoda, Daisuke Ikeda — Mon, 16 Sep 2024 00:00:00 +0000

The aging rate in Japan is 29.0% as of 2022, and it is rising due to the decrease in the total pop-ulation and the increase in the population aged 65 and over. It is significant to clarify what characteristics are present in the decision-making and behavior of the elderly. Therefore, this study conducts interviews with the elderly and qualitatively analyzes the data obtained to ex-amine the factors that influence the decision-making of the elderly.

Investigating Smart Retail Stores Adoption: An MOA Theoretical Perspective

CHIH-JOU CHEN, Ju-Chuan Wu, Cheng-You Tsai — Mon, 16 Sep 2024 00:00:00 +0000

This study employs the Motivation, Opportunity, and Ability (MOA) theory to explore factors influencing consumer adoption of smart retail stores in Taiwan. Analyzing responses from 829 potential users, it identifies significant positive effects of motivation, opportunity, and ability on consumer attitudes, which directly enhance adoption intentions. Opportunity also serves as a moderator, amplifying the impact of motivation on attitudes, highlighting its critical role in smart retail adoption strategies. This research substantively supports the adoption of smart retail stores, both theoretically and empirically, filling a notable gap in Taiwan's academic exploration of smart retailing. It provides a robust empirical foundation for promoting smart retail adoption both lo-cally and globally, offering valuable insights for the retail industry, policymakers, and academia.

Dynamic Capability of SMEs under Exogenous Crises

Kazuhisa Nakano, Naoshi Uchihira — Mon, 16 Sep 2024 00:00:00 +0000

Amid the coronavirus disease 2019 (COVID-19) pandemic, small and medium-sized enter-prises (SMEs) faced unprecedented challenges. Hence, the ability to adapt and innovate business models to thrive in a disrupted environment has become paramount. This study employs the con-cept of dynamic capability, a theoretical framework designed to address adaptation in uncertain contexts. The objective is to conduct a qualitative analysis of how SMEs navigated these changes during the pandemic. Three dynamic capabilities are identified by examining three case studies, which enabled SMEs to mitigate the impacts of COVID-19. One is the capability to utilize crisis-induced moratoriums for organizational development, which is a new finding and theoretical contribution. This study offers strategic insights for managing and overcoming exogenous crises in the future.

A Study of the Effect of Age on Employee Engagement

Morihiko Ikemizu, Takaaki Hosoda — Mon, 16 Sep 2024 00:00:00 +0000

Stock market watchdogs in the U.S. and Japanese government have mandated that listed compa-nies disclose human capital in their corporate IR. Human capital includes employee engagement, which is considered important. Age effects on employee engagement are assumed, but have not yet been fully researched. In this study, we used employee engagement survey data from a sem-iconductor company to identify characteristics of each age group. It found that engagement scores were higher in the younger age groups and once dropped in the 30-39 age group, but that engage-ment scores increased as age groups increased. Based on interviews with HR executives from the data provider and previous research, we concluded that this change was reasonable.

Visualizing Network Relationships in Tourism: A Methodological Approach to Value Creation with Practical Application

Nozomi Saito, Lisa Ruhanen, Koki Kusano, Seiko Shirasaka — Mon, 16 Sep 2024 00:00:00 +0000

In the current dynamic business environment, networks play a crucial role in fostering collabo-ration, innovation, and value creation across diverse industries. Tourism Business Ecosystems (TBEs), drawing inspiration from the concept of Business ecosystems (BEs), have garnered sig-nificant attention for their role in facilitating sustained value creation among the multitude of actors and stakeholders. Yet, there remain gaps in visualizing complex tourism networks wholis-tically and understanding how values are visualized and interconnected within the systems, par-ticularly in developing countries. This study addresses these critical gaps by proposing a descrip-tive method for visualizing the Value Creation TBE (VC-TBE), focusing on enhancing relation-ships among various actors and stakeholders and creating new avenues for fostering the growth of business networks. The method is rigorously tested and verified in the context of Uzbekistan's tourism industry, offering valuable insights into the dynamic interplay of business actors and stakeholders crucial for sustainable growth and development.

Digital Business Model Analysis Using a Large Language Model

Masahiro Watanabe, Naoshi Uchihira — Mon, 16 Sep 2024 00:00:00 +0000

Digital transformation (DX) has recently become a pressing issue for many companies as the latest digital technologies, such as artificial intelligence and the Internet of Things, can be easily utilized. However, devising new business models is not easy for companies, though they can improve their operations through digital technologies. Thus, business model design support methods are needed by people who lack digital technology expertise. In contrast, large language models (LLMs) represented by ChatGPT and natural language processing utilizing LLMs have been developed revolutionarily. A business model design support system that utilizes these tech-nologies has great potential. However, research on this area is scant. Accordingly, this study pro-poses an LLM-based method for comparing and analyzing similar companies from different business domains as a first step toward business model design support utilizing LLMs. This method can support idea generation in digital business model design.

Dynamic Subscription Pricing for Digital Service Platform

CHENG-HAN WU, Ling-Ya Huang — Mon, 16 Sep 2024 00:00:00 +0000

This research explores the dynamics of subscription-based revenue models, with a particular emphasis on the long-term pricing of the freemium model in digital service markets. By employing a continuous-time dynamic control model, the study examines how companies can strategically determine subscription prices to maximize overall profitability. The analysis focuses on the relationship between subscription fees, user base segmentation, and company investments in product enhancements. The findings i ndicate t hat subscription pricing are essential for converting free users to paid subscribers and lowering operational costs. Moreover, the results offer valuable insights for digital service providers on optimizing their pricing decisions to boost platform profitability.

Research on Behavioral Characteristics of Entrepreneurs

Katsuki Yasuoka, Takaaki Hosoda, Kiyomi Miyoshi, Tokuro Matsuo, Qiang Ma — Mon, 16 Sep 2024 00:00:00 +0000

In the U.S., the market is led by the Magnificent Seven, a group of companies with a short his-tory, but in Japan, companies with a history of more than 50 years dominate the top 10 in terms of market capitalization, and the Japanese government is taking measures to encourage entre-preneurial activity but has not achieved significant results at this moment.
This paper aims to clarify the behavioral characteristics of Japanese entrepreneur to improve entrepreneurial activity. Authors set up the following hypotheses: "cupidity," which represents the desire for wealth and property, "self-actualization" which represents the desire for growth, and "risk," which is an obstacle to entrepreneurial activity. A comparative analysis based on questionnaire survey was conducted between those who had started a business and those who had not.
As a conclusion, the results showed that there was no significant difference in "cupidity" and a significant difference in "self-actualization with the experienced group tending to have a signif-icantly higher mean. The results of "risk" were contradictory and will be a subject for further study in the future. Authors would like to design and conduct interviews with entrepreneurs in Japan to increase the reliability of the present results and ultimately made a Japanese entrepre-neurial model.

Empirical Analysis on the Interaction between Corporate Dynamics, Cultural Context and Economic Growth

Yuji Tou, Akira Nagamatsu — Mon, 16 Sep 2024 00:00:00 +0000

This study delves into how corporate dynamics relates to economic growth, particularly in terms of company entry, withdrawal, and integration. While cultural influences are recognized in prior research, a thorough investigation is absent. This study proposes that collaboration and Merger and Acquisitions (M&A) activities are key to activating dynamics, supported by empirical evi-dence of socio-economic cultural impacts. Through comparing the unique patterns of Japanese companies with those in the United States, it sheds light on the link between corporate dynamics and economic growth.