Content area
Full Text
By: Charalambos L. Iacovou Faculty of Commerce and Business Administration
University of British Columbia
2053 Main Mall
Vancouver, B.C. V6T 1Z2
CANADA
iacovou 6 phdlab.commerce.ubc.ca
Izak Benbasat
Faculty of Commerce and Business Administration
University of British Columbia
2053 Main Mall
Vancouver B.C. V6T 1Z2
CANADA
Albert S. Dexter
Faculty of Commerce and Business Administration
University of British Columbia
2053 Main Mall
Vancouver B.C. V6T 1Z2
CANADA
Abstract
Many EDI researchers and practitioners have recognized the importance of high penetration levels for the success of EDI. Unfortunately, such penetration is partly impeded by the resistance of small companies to become EDI capable. To investigate this issue, three major factors are identified that influence the EDi adoption practices of small firms. These factors are: organizational readiness (because of the low levels of IT sophistication and resource availability of small firms), external pressures to adopt (because of the weak market positions of small firms and the network nature of the technology), and perceived benefits (because of the limited impact that IT has on small firms due to under-utilization and lack of integration). By combining the anticipated effects of these factors, we developed a framework of EDI adoption by small businesses. The applicability of this framework is empirically demonstrated using the results of seven case studies. Finally, recommendations are made for the development of successful EDI partner expansion plans. These include the development of a long-term EDI partner expansion plan from the very beginning, the individual assessment of each partners EDI preparedness level, and the selection of appropriate influence tactics to expedite adoption by small partners.
Specifically, it is suggested that EDI initiators pursue promotional efforts to improve partners perceptions of EDI benefits, provide financial and technological assistance to partners with low organizational readiness, and carefully select and enact influence strategies to reduce resistance.
Keywords: Electronic data interchange, interorganizational systems, small business, electronic commerce
ISRL Categories: AI0102, CAI101, DA0201, DD0502, HAO7, HA0702
Introduction
Electronic Data Interchange (EDI) can only be of full benefit to systems initiators and adopters through widespread adoption of the technology. Widespread adoption is required to (1) transact with a substantial EDI network of business partners, and (2) eliminate the costs for maintaining parallel, non-EDI systems that are used in transacting with non-EDI-capable partners....