LEVERAGING ICT FOR PRODUCT INNOVATION: INSIGHTS FROM SOUTHEAST ASIAN COUNTRIES

Abstract

Purpose: Firms are increasingly adapting their operations, strategies, and business models to meet market challenges and strengthen their competitive advantage. The adoption of information and communication technology (ICT) is growing in popularity as it helps firms optimize processes and ensure business continuity in an increasingly dynamic and volatile business environment. Hence, this study explores the impact of information and communication technology (ICT) adoption on product innovation of Southeast Asian firms, focusing on the moderating role of research and development (R&D). Methodology: This study employed data from five countries—Cambodia, Indonesia, the Philippines, Singapore, and Vietnam—from the 2023 World Bank Enterprise Surveys (WBES). The research employs multilevel logistic regression analysis for the empirical analysis. Findings: The results indicate that all three ICT dimensions, including (i) Business’s own website or social media page, (ii) Electronic payments from customers, and (iii) Exporting directly through electronic means, significantly enhance product innovation. Additionally, R&D positively moderates the relationships between product innovation and both website/social media usage and electronic payments. However, R&D does not moderate the relationship between exporting and innovation through electronic means. Originality: The study provides policymakers and managers with significant insight into how to foster innovation through technology and R&D investments in Southeast Asia.