The extent of electronic data interchange implementation: an innovation diffusion theory perspective

Electronic Data Interchange (EDI) is an information technology which has the potential to change the nature of competition. EDI is the interorganizational exchange of business documentation in machine-processable form (Emmelhainz, 1988), and is a form of interorganizational system (IOS). This dissertation examines the extent of implementation of EDI in organizations using the theoretical framework provided by diffusion of innovation theory. This research examines innovation, organizational, and environmental factors which help explain the extent of EDI implementation in organizations. The relevance of these factors to the implementation of EDI has been suggested by research on EDI and IOS, diffusion of innovation theory, and technology management. The research uses a qualitative research approach to examine the conceptual model developed through a review of the relevant literature. The conceptual model is revised, and empirically tested by surveying organizations which are using EDI. Hypotheses are tested by analyzing the correlates of the extent of EDI implementation. A parsimonious model of the extent of EDI implementation is developed through regression analysis. Size is the most significant predictor of the extent of EDI implementation. The dissertation contributes to the understanding of the diffusion of information technology at the organizational level and extends the work on interorganizational systems.