A Comprehensive Examination of Internet-EDI Adoption

Abstract By taking advantage of the Internet, a new generation of Interorganizational Information Systems, i.e., Internet electronic data interchange (I-EDI) provides great efficiency for performing business-to-business transactions and is much more affordable than other network alternatives. Few empirical studies have been conducted to examine the adoption of I-EDI and little guidance has been given to the practitioners in the field. To fill this void, this research investigates the adoption of I-EDI by U.S. enterprises based on a comprehensive framework. Results from an online survey of 219 organizational respondents indicate that the proposed framework is able to help explain organizational adoption of I-EDI. This study provides insights and interesting findings toward technology adoption in Internet era. While some new factors are found to play important roles in IOS adoption, several conventional factors, such as technology compatibility and organization size, are no longer significant in explaining the adoption of I-EDI. Different effects of interorganizational factors such as power, trust, and relationship commitment on I-EDI adoption have been revealed. Implications for researchers and practitioners are provided.

[1]  Carol Stoak Saunders,et al.  Emerging Electronic Partnerships: Antecedents and Dimensions of EDI Use from the Supplier's Perspective , 1998, J. Manag. Inf. Syst..

[2]  K. Ramamurthy,et al.  Determinants and outcomes of electronic data interchange diffusion , 1995 .

[3]  Lyne Bouchard,et al.  Decision Criteria in the Adoption of EDI , 1993, ICIS.

[4]  Patricia J. Daugherty,et al.  PREDICTING EDI TECHNOLOGY ADOPTION IN LOGISTICS MANAGEMENT: THE INFLUENCE OF CONTEXT AND STRUCTURE , 1995 .

[5]  Susan K. Lippert,et al.  Utilization of information technology: examining cognitive and experiential factors of post-adoption behavior , 2005, IEEE Transactions on Engineering Management.

[6]  G. Zaltman,et al.  Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations , 1992 .

[7]  F. Damanpour Organizational Size and Innovation , 1992 .

[8]  Anol Bhattacherjee,et al.  Understanding Post-Adoption Behavior in the Context of Online Services , 1998, Inf. Syst. Res..

[9]  Jae-Nam Lee,et al.  The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success , 2001, Inf. Manag..

[10]  David T. Croasdell,et al.  Electronic Partnerships: When Power Takes the Form of a Barrier to Adoption , 2001 .

[11]  Louis Raymond,et al.  Managing EDI for corporate advantage: A longitudinal study , 1997, Inf. Manag..

[12]  Kenneth L. Kraemer,et al.  Migration to Open-Standard Interorganizational Systems: Network Effects, Switching Costs, and Path Dependency , 2005, MIS Q..

[13]  Ranjay Gulati,et al.  What is the optimum amount of organizational slack?: A study of the relationship between slack and innovation in multinational firms , 1997 .

[14]  J. R. French,et al.  The bases of social power. , 1959 .

[15]  B. Preissl,et al.  Strategic use of communication technology—diffusion processes in networks and environments , 1995 .

[16]  Sree Nilakanta,et al.  Implementation of Electronic Data Interchange: An Innovation Diffusion Perspective , 1994, J. Manag. Inf. Syst..

[17]  C. Shapiro,et al.  Network Externalities, Competition, and Compatibility , 1985 .

[18]  M R Crum,et al.  AN ASSESSMENT OF MOTOR CARRIER ADOPTION, USE, AND SATISFACTION WITH EDI , 1996 .

[19]  V. Grover An Empirically Derived Model for the Adoption of Customer‐based Interorganizational Systems* , 1993 .

[20]  Izak Benbasat,et al.  Research Report: Empirical Test of an EDI Adoption Model , 2001, Inf. Syst. Res..

[21]  K. Ramamurthy,et al.  Organizational and Interorganizational Determinants of EDI Diffusion and Organizational Performance: A Causal Model , 1999, J. Organ. Comput. Electron. Commer..

[22]  Thompson S. H. Teo,et al.  Key Dimensions of Inhibitors for the Deployment of Web-Based Business-to-Business Electronic Commerce , 2006, IEEE Transactions on Engineering Management.

[23]  Hock-Hai Teo,et al.  Innovation Diffusion Theory as a Predictor of Adoption Intention for Financial EDI , 1995, ICIS.

[24]  William R. King,et al.  Developing a framework for analyzing IS sourcing , 2000, Inf. Manag..

[25]  Pauline Ratnasingam,et al.  Technology Trust in Internet-Based Interorganizational Electronic Commerce , 2003, J. Electron. Commer. Organ..

[26]  Riyad Eid,et al.  International internet marketing: A triangulation study of drivers and barriers in the business‐to‐business context in the United Kingdom , 2005 .

[27]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[28]  Paul J. Hart,et al.  Power and Trust: Critical Factors in the Adoption and Use of Electronic Data Interchange , 1997 .

[29]  Stuart Sawabini EDI AND THE INTERNET , 2001 .

[30]  R. O'Callaghan,et al.  Adoption Correlates and Share Effects of Electronic Data Interchange Systems in Marketing Channels , 1992 .

[31]  M. Culnan,et al.  Information Privacy Concerns, Procedural Fairness, and Impersonal Trust: An Empirical Investigation , 1999 .

[32]  Ettore Bolisani,et al.  Electronic commerce and open communities: an assessment of internet EDI , 2004, Int. J. Serv. Technol. Manag..

[33]  L. Bourgeois On the Measurement of Organizational Slack , 1981 .

[34]  JoAnne Yates,et al.  Electronic markets and electronic hierarchies , 1987, CACM.

[35]  Robert J. Kauffman,et al.  Should We Wait? Network Externalities, Compatibility, and Electronic Billing Adoption , 2001, J. Manag. Inf. Syst..

[36]  F. Riggins,et al.  The growth of interorganizational systems in the presence of network externalities , 1994 .

[37]  Margaret Tan,et al.  A Contingency Model of Internet Adoption in Singapore , 1997, Int. J. Electron. Commer..

[38]  Ben M. Bensaou,et al.  Inter-organizational relationships and information technology: a conceptual synthesis and a research framework , 1996 .

[39]  Izak Benbasat,et al.  Predicting Intention to Adopt Interorganizational Linkages: An Institutional Perspective , 2003, MIS Q..

[40]  Alina M. Chircu,et al.  Trust, Expertise, and E-Commerce Intermediary Adoption , 2000 .

[41]  Karthik N. S. Iyer,et al.  Predicting the level of B2B e-commerce in industrial organizations , 2005 .

[42]  Rebecca Angeles,et al.  Revisiting the role of Internet‐EDI in the current electronic commerce scene , 2000 .

[43]  John D'Ambra,et al.  Emerging factors in user evaluation of the World Wide Web , 2001, Inf. Manag..

[44]  Chih-Chien Wang,et al.  Acceptance of Technology with Network Externalities: An Empirical Study of Internet Instant Messaging Services , 2005 .

[45]  Philip Yetton,et al.  Strategic Payoff from EDI as a Function of EDI Embeddedness , 2000, J. Manag. Inf. Syst..

[46]  K. Ramamurthy,et al.  The Role of Interorganizational and Organizational Factors on the Decision Mode for Adoption of Interorganizational Systems , 1995 .

[47]  L. G. Tornatzky,et al.  Innovation characteristics and innovation adoption-implementation: A meta-analysis of findings , 1982, IEEE Transactions on Engineering Management.

[48]  R. Bagozzi,et al.  On the evaluation of structural equation models , 1988 .

[49]  Mark N. Frolick,et al.  INTERNET EDI ADOPTION: TRUST IN TECHNOLOGYAND APPLICATION KNOWLEDGE , 2002 .

[50]  Hock-Hai Teo,et al.  Organizational Transformation Using Electronic Data Interchange: The Case of TradeNet in Singapore , 1997, J. Manag. Inf. Syst..

[51]  K. Klein,et al.  The Challenge of Innovation Implementation , 1996 .

[52]  Gyoo Gun Lim,et al.  The impact of partnership attributes on EDI implementation success , 2003, Inf. Manag..

[53]  Annette Mills,et al.  A model of Internet adoption by SMEs , 2001, Inf. Manag..

[54]  G. Gowrisankaran,et al.  Network Externalities and Technology Adoption: Lessons from Electronic Payments , 2002 .

[55]  L. Williams UNDERSTANDING DISTRIBUTION CHANNELS: AN INTERORGANIZATIONAL STUDY OF EDI ADOPTION / , 1994 .

[56]  R. MacCallum,et al.  Power analysis and determination of sample size for covariance structure modeling. , 1996 .

[57]  K. Provan Recognizing, Measuring, and Interpreting The Potential/Enacted Power Distinction In Organizational Research , 1980 .

[58]  Deepak Khazanchi,et al.  Information Technology (IT) Appropriateness: The Contingency Theory of “Fit” and it Implementation in Small and Medium Enterprises1 , 2005, J. Comput. Inf. Syst..

[59]  B. J. Fogg,et al.  Credibility and computing technology , 1999, CACM.

[60]  Young-Gul Kim,et al.  Effect of Partnership Quality on IS Outsourcing Success: Conceptual Framework and Empirical Validation , 1999, J. Manag. Inf. Syst..

[61]  R. Narasimhan,et al.  AN EMPIRICAL EXAMINATION OF THE UNDERLYING DIMENSIONS OF PURCHASING COMPETENCE , 2001 .

[62]  Dale Goodhue,et al.  Task-Technology Fit and Individual Performance , 1995, MIS Q..

[63]  J. S. Long,et al.  Testing Structural Equation Models , 1993 .

[64]  Carleen F. Maitland,et al.  Strategic use of the Internet by small- and medium-sized companies: an exploratory study , 2002, Inf. Econ. Policy.

[65]  Chyan Yang,et al.  A decision model for IS outsourcing , 2000, Int. J. Inf. Manag..

[66]  Gregory R. Madey,et al.  The influence of organization structure and organizational learning factors on the extent of EDI implementation in U.S. firms , 1998 .

[67]  Paula M. C. Swatman,et al.  EDI System Integration: A Definition and Literature Survey , 1992, Inf. Soc..