Numerous empirical as well as conceptual studies show that a high level of organisational capabilities or intangible assets are essential to realise a higher return on IT investments, and that IT by itself cannot produce a high return. Hence the objective of the article is to investigate whether and how IT can augment organisational capabilities. Using “organisational IQ” framework to measure organisational capabilities and the databases of Japanese SME’s and listed companies, the relationships between IT investments and five principles of organisational IQ are evaluated, both qualitatively (expert judgement) and quantitatively (regressions). Results from the both evaluations concur that IT can be most effective in augmenting external information awareness (EIA), followed by those in internal knowledge dissemination (IKD). IT’s potential impacts on designing effective decision architecture (EDA) is evaluated as very limited. The article empirically identifies the possible areas where IT can augment organisational capabilities, which usefully contributes academically and practically.

This paper is to find out the common characteristics of internet-based companies which raise their profitability during the period after IPO. In the paper, we picked up 70 internet-based companies listed on the Tokyo Stock Exchange (first section and Mothers), categorized them in 5 markets, and analyzed the characteristics of the companies raising their profitability. As a result, such companies showed the growth on the 1st largest business segment at the time of IPO. Also, the size of the 2nd and following businesses has grown larger than the 1st business segment even though there are small differences among the markets. Further, it is recognized that such characteristics are different depending on the length of the years after IPO.