Electronic data interchange adoption from technological, organisational and environmental perspectives

Abstract

This study empirically examines determinants of electronic data interchange EDI adoption. The research model for this study was developed based on factors that influence EDI adoption including technological factors benefits, costs, risks, security, complexity, organisational factors size, top management support, IT capability, internal championship, compatibility, and environmental factors external pressure, inter-organisational trust, critical mass, legal/policy framework. This study is the first to conceptualise an integrated relationship between EDI adoption, technological factors, organisational factors, and environmental factors in one model. The study was conducted using a survey questionnaire. The questionnaires were distributed to EDI adopters in Malaysia and in total, 284 responses were collected and analysed. The findings show that inter-organisational trust, external pressure, costs, and size of adopting companies have significant impact on EDI adoption. The study provides a clear understanding of manager's perception about EDI adoption in their businesses. EDI adopting firms and managers could gain an understanding of the complexities inherent in EDI adoption to avoid barriers and increase the likelihood of achieving desired benefits. Besides, this study is important in a global context, as companies in Malaysia are going for exporting their product in the global marketplace.