The Influence of Organization Structure and Organizational Learning Factors on the Extent of EDI Implementation in U.S. Firms

Authors:
Gregory R. Madey;Matthew K. Mcgowan
Affiliations:
Kent State University, USA;Bradley University, USA
Venue:
Information Resources Management Journal
Year:
1998

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Abstract

Electronic Data Interchange EDI is a widely used form of electronic commerce. Numerous strategic and tactical advantages have been attributed to the use of EDI. We develop and empirically test a theoretical model to explain the extent of EDI implementation in organizations. Factors considered include organization structural characteristics size, centralization, and functional differentiation and organization learning factors technical expertise, level of EDI knowledge, and training availability. We use three dependent variables to assess the extent of EDI implementation volume, diversity, and sophistication. We analyze 235 responses from a national survey of 1200 EDI users. Our analysis suggests the data provide some support for the model. The results indicate that organization size explains much of the extent of EDI implementation in organizations, suggesting that the extent of EDI implementation is partly a matter of resource availability and transaction volume. The level of technical and EDI knowledge also influences the extent of EDI implementation. Functional differentiation affects EDI diversity and EDI sophistication. Training availability influences EDI sophistication in organizations.