Electronic Data Interchange (EDI) Adoption

Abstract

A review of the literature showed that there appears to be very little research undertaken on Electronic Data Interchange (EDI) adoption by small to medium sized business (SMEs) particularly in Singapore. This study is a preliminary attempt to quantify this area. Using a survey-based methodology, the research examined EDI adoption. Results indicate that Singapore SMEs confirm findings by some researchers that EDI adoption is significantly associated with a firm’s annual sales but is not significantly associated with employee size as other studies have shown (Rogers, Daugherty, & Stank, 1992). This study is at odds with previous single-dimension EDI adoption studies indicating a significant relationship between firm size (annual sales) and EDI depth (Williams, Magee, & Suzuki, 1998). Organization size showed a significant relationship with the volume and diversity of EDI use but not with the depth and breadth. The most important reason for Singaporean SMEs to adopt EDI was pressure from their EDI-capable trading partners, treating pressure from their competitors as the least important.