Factors affecting the implementation of electronic data interchange in Korea

Abstract

Although there have been a number of studies of the determinant factors of Electronic Data Interchange (EDI) implementation, most studies were carried out in the United States or Europe. The purpose of this study is to identify the determinant factors which affect implementation of EDI systems by Korean companies. Decentralization, EDI standards, technical compatibility, technical support by EDI vendors, education and training and participation of trading partners positively affect the extent of EDI usage. Formalization, technical compatibility, user involvement and participation of trading partners affect EDI integration with internal applications. Top management support and the participation of trading partners promote the extent of EDI operations. This study provides evidence of the effect of important determinant factors such as participation of trading partners and technical compatibility replicating previous EDI studies conducted in that US and Europe. For policy makers ad EDI developers, this study provides insights as to appropriate measures and incentives system designed to encourage EDI and B2B implementation.