Evaluating the impact of sales methods on profitability in the Japanese software industry
This study aims to examine the impact of sales channels, either direct or indirect, on the profitability of software companies in Japan, and to further elucidate the differences in international competitive advantages by comparing Japanese firms with U.S. SaaS companies. This study analyzes the fina...
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LLC "CPC "Business Perspectives"
2024-11-01
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| Series: | Innovative Marketing |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21085/IM_2024_04_Ishikawa.pdf |
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| author | Takaaki Ishikawa Kiminori Gemba |
| author_facet | Takaaki Ishikawa Kiminori Gemba |
| author_sort | Takaaki Ishikawa |
| collection | DOAJ |
| description | This study aims to examine the impact of sales channels, either direct or indirect, on the profitability of software companies in Japan, and to further elucidate the differences in international competitive advantages by comparing Japanese firms with U.S. SaaS companies. This study analyzes the financial data of Japanese software manufacturers listed on the Tokyo Stock Exchange over the three-year period from 2020 to 2022. Companies are classified into direct sales and indirect sales groups based on their revenue and operating profit margins. Additionally, Welch’s t-test was performed to compare the profitability of these companies, and comparisons were also made with U.S. Software-as-a-Service (SaaS) companies. The analysis revealed that Japanese companies adopting indirect sales channels exhibited statistically significantly higher profitability than those using direct sales channels (t = 2.3828, p = 0.0263, mean difference = 0.1701). Moreover, Japanese companies with indirect sales channels also demonstrated significantly higher profitability when compared to U.S. SaaS companies (t = 4.7911, p = 0.00001, mean difference = 0.3874). These findings suggest that, particularly in the small and medium-sized enterprise (SME) market, the use of indirect sales channels effectively bridges the IT literacy gap and enhances profitability. This study concludes that indirect sales channels serve as a strategic factor that strengthens the competitive advantage of Japanese software companies and contributes to the improvement of profitability. |
| format | Article |
| id | doaj-art-ee19bc2f44f8454d82b5ca094c779ac4 |
| institution | OA Journals |
| issn | 1814-2427 1816-6326 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Innovative Marketing |
| spelling | doaj-art-ee19bc2f44f8454d82b5ca094c779ac42025-08-20T02:15:47ZengLLC "CPC "Business Perspectives"Innovative Marketing1814-24271816-63262024-11-0120412113310.21511/im.20(4).2024.1121085Evaluating the impact of sales methods on profitability in the Japanese software industryTakaaki Ishikawa0https://orcid.org/0009-0003-1720-9193Kiminori Gemba1https://orcid.org/0000-0002-0309-0764Ph.D. Candidate, Graduate School of Technology Management (MOT), Ritsumeikan University, JapanDoctor of Philosophy, Professor, Dean, Graduate School of Innovation Management, Department of Innovation Management Major, Hosei Business School of Innovation Management, JapanThis study aims to examine the impact of sales channels, either direct or indirect, on the profitability of software companies in Japan, and to further elucidate the differences in international competitive advantages by comparing Japanese firms with U.S. SaaS companies. This study analyzes the financial data of Japanese software manufacturers listed on the Tokyo Stock Exchange over the three-year period from 2020 to 2022. Companies are classified into direct sales and indirect sales groups based on their revenue and operating profit margins. Additionally, Welch’s t-test was performed to compare the profitability of these companies, and comparisons were also made with U.S. Software-as-a-Service (SaaS) companies. The analysis revealed that Japanese companies adopting indirect sales channels exhibited statistically significantly higher profitability than those using direct sales channels (t = 2.3828, p = 0.0263, mean difference = 0.1701). Moreover, Japanese companies with indirect sales channels also demonstrated significantly higher profitability when compared to U.S. SaaS companies (t = 4.7911, p = 0.00001, mean difference = 0.3874). These findings suggest that, particularly in the small and medium-sized enterprise (SME) market, the use of indirect sales channels effectively bridges the IT literacy gap and enhances profitability. This study concludes that indirect sales channels serve as a strategic factor that strengthens the competitive advantage of Japanese software companies and contributes to the improvement of profitability.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21085/IM_2024_04_Ishikawa.pdfcompetitive advantageJapanese software industryprofitability analysissales channelssales strategy optimization |
| spellingShingle | Takaaki Ishikawa Kiminori Gemba Evaluating the impact of sales methods on profitability in the Japanese software industry Innovative Marketing competitive advantage Japanese software industry profitability analysis sales channels sales strategy optimization |
| title | Evaluating the impact of sales methods on profitability in the Japanese software industry |
| title_full | Evaluating the impact of sales methods on profitability in the Japanese software industry |
| title_fullStr | Evaluating the impact of sales methods on profitability in the Japanese software industry |
| title_full_unstemmed | Evaluating the impact of sales methods on profitability in the Japanese software industry |
| title_short | Evaluating the impact of sales methods on profitability in the Japanese software industry |
| title_sort | evaluating the impact of sales methods on profitability in the japanese software industry |
| topic | competitive advantage Japanese software industry profitability analysis sales channels sales strategy optimization |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21085/IM_2024_04_Ishikawa.pdf |
| work_keys_str_mv | AT takaakiishikawa evaluatingtheimpactofsalesmethodsonprofitabilityinthejapanesesoftwareindustry AT kiminorigemba evaluatingtheimpactofsalesmethodsonprofitabilityinthejapanesesoftwareindustry |