Amazon's initiative transforming a non-contact society : Digital disruption leads the way to stakeholder capitalization

Abstract

Contrary to the decisive role of R&D centered on information and communication technology (ICT) in the digital economy, its excessive expansion has resulted in declining productivity due to the two-faced nature of ICT.

Consequently, the novel concept emerges of innovation that maintains sustainable growth by harnessing the vigor of soft innovation resources (SIRs).

Pioneering endeavors can be observed at the forefront of the global ICT leaders. World R&D leader Amazon has been harnessing the power of users that seek SIRs. This functions as a virtuous cycle, leading to the transformation of R&D by fusing a unique R&D system with a sophisticated financing system. With this orchestration, Amazon leverages the expectations of a wide range of stakeholders, and takes the initiative of stakeholder capitalism in which stakeholders bet on Amazon's prospecting future.

This paper attempts to elucidate the driving force of this notable accomplishment, taking Amazon's recent challenge in developing advanced digital fashions (ADFs) successively as prospecting SIRs. Since fashion reflects the change in socio-economic and cultural life, the fashion industry is in the midst of dynamic global change in the digital economy, which necessitates a digital solution.

Based on a co-evolution analysis of the development trajectories of Amazon and the fashion industry, it was demonstrated that Amazon has secured a digital solution by developing ADFs successively, and that this success can be attributed to learning orchestration externality. Thus, broad stakeholders’ involvement betting on its challenge, expecting the future prospects of Amazon and the fashion industry, can be expected. Non-contact society accelerates this expectation toward on-demand ADFs manufacturing.

These findings give rise to suggestions regarding a new concept of R&D and subsequent neo -open innovation in the digital economy.