The Adoption and Impact of EDI in Dutch SME's

This paper tests a recent model, developed by Iacovou et al. (1995), of the adoption and integration of Electronic Data Interchange (EDI) systems. Their model includes three factors as determinants of EDI adoption: perceived benefits, organizational readiness, and external pressure. Factors were measured in 137 small businesses in the Netherlands. Measuring instruments were developed and used in structured interview sessions with the managers of these small businesses. The responses from the 83 nonadopters support the validity of the model in predicting intent to adopt EDI. All three factors were found to be significant in the predicted direction. The responses from the 54 EDI adopters showed that the factors expected benefits and external pressure could significantly explain the adoption of EDI. However, external pressure seems to be the dominant factor to explain the adoption of EDI by small businesses. The results of the EDI adopters show also that there was no significant relationship between the level of integration of EDI (internally and externally) with the actual benefits adopters received from utilizing EDI. More integrated systems did not offer higher direct and indirect benefits.