The Adoption of Electronic Data Interchange

Electronic Data Interchange plays an important role in improving organizational competitiveness. Information Technology has been instrumental in integrating functional areas within and outside firms. This research uses empirical evidence to evaluate the state of EDI in the willingness of SME's to connect electronically to a large distribution centre in South Africa. Furthermore it investigates the EDI adoption rate from the viewpoint of a small business. Many such businesses feel coerced by larger trade partners to adopt EDI or lose the customer. Most practitioners of EDI are aware of the necessity for high penetration levels, to make EDI successful. However, penetration may be hindered by the refusal of small firms to accept EDI. Based on prior research this model incorporates 4 factors that are hypothesized to have an influence on EDI Adoption. The survey was concerned about four potential strategies for achieving business objectives namely: organizational readiness, external pressure, perceived benefits and security. Data was collected from 105 firms who responded to an e-mail survey...