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Research Report: Empirical Test of an EDI Adoption Model

Faculty of Commerce and Business Administration, University of British Columbia, 2053 Main Mall, Vancouver, British Columbia V6T 1Z2
Faculty of Commerce and Business Administration, University of British Columbia, 2053 Main Mall, Vancouver, British Columbia V6T 1Z2
Faculty of Commerce and Business Administration, University of British Columbia, 2053 Main Mall, Vancouver, British Columbia V6T 1Z2
chwelos{at}commerce.ubc.ca
izak.benbasat{at}commerce.ubc.ca
dexter{at}commerce.ubc.ca

This paper is the first test of a parsimonious model that posits three factors as determinants of the adoption of electronic data interchange (EDI): readiness, perceived benefits, and external pressure. To construct the model, we identified and organized the factors that were found to be influential in prior EDI research. By testing all these factors together in one model, we are able to investigate their relative contributions to EDI adoption decisions. Senior purchasing managers, chosen for their experience with EDI and proximity to the EDI adoption decision, were surveyed and their responses analyzed using structural equation modeling. All three determinants were found to be significant predictors of intent to adopt EDI, with external pressure and readiness being considerably more important than perceived benefits. We show that the constructs in this model can be categorized into three levels: technological, organizational, and interorganizational. We hypothesize that these categories of influence will also be determinants of the adoption of other emerging forms of interorganizational systems (IOS).¹

Key Words: Electronic Data Interchange; Electronic Commerce; Interorganizational Systems; Adoption of IT; Empirical Research; Partial Least Squares
History: This paper was received on July 13, 1998.

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