A quantitative analysis of factors contributing electronic data interchange adoption among Bruneian SMEs

Abstract

PurposeThe primary purpose of this research is to examine and explore quantitatively the determining factors that contribute electronic data interchange (EDI) adoption among Brunei's small and medium enterprises (SMEs) not addressed previously.Design/methodology/approachThe study is based upon survey approach to collect the primary data from 50 SMEs in Brunei Darussalam based upon stratified random sampling plan. A one stage normative model that is associative in nature was developed based upon reviewing the previous researches and further in line with the research objectives. The model elicits six factors that are grouped in three categories, namely, organizational, environmental and technological.FindingsThe findings based upon regression analysis indicate that factors such as perceived benefits, government support and management support are significant determinants of EDI adoption. The 35 percent of the total variance is explained by these three factors.Research limitations/implicationsThe small market size as well small sample size is one of the research limitations in addition that only 20 percent of the SMEs have adopted EDI. The inclusion of some more variables such as external pressure and competitive pressure will not only increase the shared variance, but will also bring broader perspective to the research. However, findings support similar other regional Asia‐Pacific studies.Practical implicationsThe study has practical significance as it provides help to the management of the SMEs with the factors contributing towards EDI adoption. In case, these SMEs have to capitalize on EDI adoption, the management with the government support should not only take a supporting role, but also act proactively and competitively. The management focusing on the potential benefits could further trigger the adoption.Originality/valueThis pioneering study adds value to the existing knowledge and supports previous work. It further provides a platform for the future research. The EDI adoption among Brunei's SMEs could further be geared up by considering the factors mentioned above.