Benefits Of Electronic Data Interchange Research Articles

A perception-based model for EDI adoption in small businesses using a technology–organization–environment framework

The wide adoption of electronic data interchange (EDI) has been argued to be important for the success of the technology. Past studies on EDI have focused mainly on large firms, as they were the major users at the time. With the advance of technology, however, EDI applications that used to require mainframe computers can be used on PCs at a much lower cost. At a result, small businesses are now able to enjoy the benefits of EDI. Using a technology–organization–environment framework, this study proposes a perception-based small business EDI adoption model that is tested against data collected from 575 small firms in Hong Kong. Six factors are tested using logistic regression and five are found to be significant in distinguishing adopter firms from non-adopter firms. The results suggest the perception-based model using a technology–organization–environment framework is a useful approach for examining factors affecting the adoption decision. For small businesses, while direct benefits are perceived to be higher by adopter firms than by non-adopter firms, indirect benefits are not perceived differently by either adopter firms or non-adopter firms, contrary to the findings in studies on large business. In addition, adopter firms perceive lower financial costs and higher technical competence than non-adopter firms do. Also, adopter firms perceive higher government pressure but lower industry pressure than non-adopter firms do. Implications of the findings and future research areas are discussed.

EDI Adoption and Implementation: An Examination of Perceived Operational and Strategic Benefits, and Controls

In recent years, Electronic Data Interchange (EDI) has revolutionized the way in which businesses conduct their trading activities. Even though the popularity and potential attached to EDI is growing rapidly, knowledge regarding the nature of EDI benefits and EDI control practices is very limited. This paper reports the results of a survey of EDI users that explores these key implementation issues. This study focuses on organizational factors that are associated with EDI adoption and implementation. Findings indicate that organizations experience both operational and strategic benefits from EDI. Customer-initiated EDI users recognized slightly greater EDI strategic benefits than did other users. Also, long-time users recognized both strategic and operational benefits in greater proportions than did more recent users, and smaller firms more often cited better customer service and convenience (as strategic and operational benefits, respectively) from implementing EDI. An examination of control practices revealed that while some basic procedures such as passwords and logs are widely used, the overall EDI control structure is typically weak. The role of management support and awareness and the implications for the management and control of EDI are also discussed.

Organizational and Interorganizational Determinants of EDI Diffusion and Organizational Performance: A Causal Model

Electronic data interchange (EDI), a specific form of interorganizational systems, has the potential to significantly influence business operations and the exchange of business documents in a number of industries and to provide substantive tangible and intangible benefits to the participating firms. However, successful implementation and diffusion of these systems innovations requires the cooperation and commitment of all participating member firms. A number of interorganizational as well as internal, organization-specific factors can influence both the extent to which EDI is diffused and used and the level of subsequent benefits that accrue to the firms. Research from sociopolitical process framework in marketing, organizational theory, innovation theory, use of information technology for competitive advantage, and information systems (IS) implementation was used to identify 3 interorganizational variables (customer support, customer expertise, competitive pressure) and 4 organizational variables (internal support, EDI's benefits potential, EDI compatibility, resource intensity). In this study, we develop a multidimensional measure for EDI diffusion to capture both external integration and internal integration. We then examine the influence of these 7 variables on the extent to which EDI adopter firms pursue diffusion and whether more diffusion leads to superior organizational-level outcomes. Two senior executives (the chief executive officer and a senior manager responsible for the IS function or EDI) from 83 firms in the motor carrier industry participated in a field survey. The results from a structural equation model (SEM), developed using LISREL, provide quite a strong support for the hypothesized relations. All 4 organizational variables and 2 of the 3 interorganizational variables (customer support and competitive pressure) influence EDI diffusion. The results also indicate that external integration dimension of diffusion enables adopter firms to achieve improved operational and market-oriented performance, whereas internal integration contributes only to operational performance.

EDI benefits and barriers

Summarizes previous logistics research into the benefits of, and barriers to, electronic data interchange (EDI). Argues that information management in general, and EDI in particular, is vitally important for today’s international freight forwarder. Presents the findings from empirical studies of international freight forwarders and customers of international freight forwarders with respect to EDI benefits and barriers. Suggests that numerous opportunities exist for further research into EDI benefits and barriers across various logistics constituencies.

Electronic data interchange for process change in an integrated supply chain

Many companies have adopted electronic data interchange (EDI), often with results inconsistent with the expectations of the company. In these instances, it is often the mismatch between expectations and the company’s activities undertaken to achieve the desired performance gain that fuels their dissatisfaction with EDI. This same mismatch often causes academic research into EDI and supply chain management to lose focus. This article presents a framework of EDI benefits in a supply chain management context that can be used to match a company’s EDI efforts with its desired outcomes from EDI use. The framework states that two critical factors to understanding EDI’s impact on supply chain management are the span of management control of the business process in question and whether EDI directly or indirectly influences that same business process. The proposed framework is then used to develop a research agenda for EDI and supply chain management. We suggest possible directions for research methods, measure development and hypothesis generation that can be used in future research studies.

Towards the development of measures of perceived benefits and compatibility of EDI: a comparative assessment of competing first order factor models

This study describes the development and testing of sets of items to capture constructs that are widely used in the study of electronic data interchange (EDI) adoption and integration. They are the perceived benefits of EDI and the extent to which EDI is compatible with existing organizational practices. Sets of items to measure both perceived direct and perceived indirect benefits are assessed, as are sets of items to measure two types of compatibility: organizational and technological. Findings indicate that the model adequately captures each of the proposed constructs except technological compatibility. Conclusions and directions for future research are presented.

EDI Benefits and Compatibility: An Empirical Comparison of End User and EDI Manager Perspectives

A recent survey of electronic data interchange (EDI) managers and their key end users finds that, although EDI managers are somewhat more optimistic about EDI than their end users, there are few significant differences of opinion. Interestingly, both believe that their firms have realized indirect benefits from EDI such as improvements in competitive advantage more than direct cost reductions. With regard to compatibility, EDI managers believe that there were fewer disruptions and that users learned to use EDI faster than did users.

Towards the development of measures of perceived benefits and compatibility of EDI: a comparative assessment of competing first order factor models

This study describes the development and testing of sets of items to capture constructs that are widely used in the study of electronic data interchange (EDI) adoption and integration. They are the perceived benefits of EDI and the extent to which EDI is compatible with existing organizational practices. Sets of items to measure both perceived direct and perceived indirect benefits are assessed, as are sets of items to measure two types of compatibility: organizational and technological. Findings indicate that the model adequately captures each of the proposed constructs except technological compatibility. Conclusions and directions for future research are presented.

How the Internet is Breaking Down Barriers to EDI

Electronic data interchange (EDI) used to require proprietary value-added networks (VANs) or private lines, which made it difficult and expensive to support multiple connections with different trading partners. the Internet has changed all of this. Even traditional VANs see the writing on the wall and are offering Internet-based EDI. This, and other changes, is bringing the benefits of EDI to small companies and enlarging the base of trading partners.

Business Value of Information Technology: A Study of Electronic Data Interchange

A great deal of controversy exists about the impact of information technology on firm performance. While some authors have reported positive impacts, others have found negative or no impacts. This study focuses on Electronic Data Interchange (EDI) technology. Many of the problems in this line of research are over-come in this study by conducting a careful analysis of the performance data of the past decade gathered from the assembly centers of Chrysler Corporation. This study estimates the dollar benefits of improved information exchanges between Chrysler and its suppliers that result from using EDI. After controlling for variations in operational complexity arising from mix, volume, parts complexity, model, and engineering changes, the savings per vehicle that result from improved information exchanges are estimated to be about $60. Including the additional savings from electronic document preparation and transmission, the total benefits of EDI per vehicle amount to over $100. System wide, this translates to annual savings of $220 million for the company.

Electronic Data Interchange (EDI)

Portions of this paper were presented as part of a panel discussion on the benefits of Electronic Data Interchange between libraries and book and periodical vendors. Other panelists in the discussion group represented the book and periodical supplier perspectives. The experience of Laurentian University's Library which has been using a proprietary format since 1987 to send electronic purchase orders to The Bookhouse in Jonesville, Michigan, and the current work they are doing with John Coutts Library Services Ltd., S&B Books, Bookhouse, Blackwells, Faxon Canada, Canebsco, and others in implementing the ANSI X12 BISAC approved 850 Purchase Order and the SISAC approved 810 Invoice transaction formats for serials invoices are featured in this paper.

Electronic Data Interchange and Naval Aviation

ABSTRACT With the Department of Defense (DoD) community facing declining budgets, reductions in workforce, and a shrinking business base, re‐thinking of traditional methods of doing business is necessary. As part of the larger Federal government initiative, DoD has adopted Electronic Data Interchange (EDI) to improve its mission effectiveness and reduce operating costs. EDI is the paperless exchange of business information using standard, transaction‐based formats. The EDI standard details how to format electronic messages that transmit information usually found on purchase orders, invoices, and other documents. The benefits of EDI to Naval Air Systems (NAVAIR) are more than just reducing paperwork, eliminating data entry errors, and receiving more timely data. EDI is a methodology to streamline functional processes; increase visibility of requirements to commercial activities; increase productivity through reduced cycle times; reduce material inventories, and develop electronic linkage from Navy information systems to DoD trading partners. This paper examines the technology of EDI, its uses, benefits, and explores some of the opportunities for EDI applications in the NAVAIR community such as: maintenance and engineering; procurement; and financial management.

Electronic data interchange use in German and US organizations

This paper investigates the adoption of electronic data interchange (EDI) by large German firms. In particular, the positive and negative impact of various factors on EDI selection decision is analysed, along with realized benefits of EDI application. Large German user and non-user organizations have been surveyed and several follow-up interviews have been conducted. The findings are compared with the results of a similar survey conducted recently in the USA. A strong interest in trading electronically and a steady growth in the application of EDI was found as companies began to realize the early benefits. Among users the actual quality of EDI use was found to be low in many cases. Typical findings were high levels of forced EDI adoption by large organizations and only limited achievement of high level benefits of EDI. Several obstacles for widespread EDI adoption and its effective use have yet to be overcome. The far reaching impact of EDI on the organization and its integration cause major problems. Because the EDI scene in both countries is the result of a patchwork of effectively closed trading communities, we cannot yet expect any single document standard to dominate.

Electronic Data Transfer:

This article provides an overview of Electronic Data Interchange as it applies to serials acquisitions. and examines the steps followed in planning to link two systems, Bibliotech, an inlegated library system, and EBSCONET. the Ebsco Subscription Service on-line service, at Raweon's Equipment Division Technical Information Center. Benefits of electronic data interchange are discussed and the role of the serials librarian as a manager of computer to computer data transmission is addressed.

EDI Implementation: A Comparative Study of JIT and Non‐JIT Manufacturing Firms

To compete successfully in the global market, firms are adopting new technologies and manufacturing strategies. The just‐in‐time (JIT) philosophy and electronic data interchange (EDI) are two recent developments that can help these firms. The success of JIT depends on timely and effective exchange of information between the manufacturing firm and its trading partners. The literature suggests that EDI, as a communication tool, can meet this demand. However, no study investigates the impact of EDI in the JIT environment. Also, the literature lacks a thorough investigation of the EDI benefits realized by JIT and non‐JIT manufacturing firms. Examines these issues and finds that the reason for choosing EDI and the benefits realized by JIT firms differ from those of the non‐JIT firms. Suggests that JIT firms benefit more from EDI than non‐JIT firms.

EDI Implementation in JIT and Non‐JIT Manufacturing Firms: A Comparative Study

To compete successfully in the global market, firms are adopting new technologies and manufacturing strategies. The Just‐in‐Time (JIT) philosophy and Electronic Data Interchange (EDI) are two recent developments that can help these firms. The success of JIT depends on timely and effective exchange of information between the manufacturing firm and its trading partners. The literature suggests that EDI, as a communication tool, can meet this demand. However, no study investigates the impact of EDI in the JIT environment. Also, the literature lacks a thorough investigation of the EDI benefits realized by JIT and non‐JIT manufacturing firms. This empirical study examines these issues. It is found that the reason for choosing EDI and the benefits realized by JIT firms differ from those of the non‐JIT firms. Further analysis suggests that JIT firms benefit more from EDI that non‐JIT firms.