EDI use and participation models: from the inter‐organizational relationship perspective

This paper studies the determinants of electronic data interchange (EDI) adoption and use in the Spanish automotive supply industry and the moderation effect of cooperation within the supply chain. The empirical results indicate that EDI adopters perceive more operational benefits, more external pressure and mutual understanding, and less technical and organisational difficulties than do non-adopters. The use of EDI is greater among suppliers that perceive more strategic benefits and less cost and organisational difficulties, have a proactive management, are less dependent on suppliers, and adopt EDI earlier. Cooperation is a moderator of organisational difficulties for EDI adoption and use, and strategic benefits for EDI use.

This article analyses the moderation effect of co‐operation on electronic data interchange (EDI) adoption, and the influence of EDI use on the co‐ordinating activities in the automotive supply chain. The empirical results from a survey of 116 Spanish automotive suppliers indicate that EDI adopters perceive more operational benefits, more external pressure and mutual understanding, and fewer technical and organisational difficulties than do non‐adopters of EDI. The use of EDI is greater among suppliers that perceive more strategic benefits and fewer cost and organisational difficulties, have a proactive management, are less dependence on suppliers, and adopt EDI earlier. Co‐operation is a moderator of organisational difficulties for EDI adoption and use, and strategic benefits for the use of EDI. The results also show that companies use EDI to become more co‐ordinated with suppliers and customers.

Reports the results of a survey on Electronic Data Interchange (EDI) use in the retail industry. Finds that contrary to expectations, the extent of EDI adoption is fairly modest with few companies employing EDI for transactions other than purchase orders and invoicing. Discovers that the motivating factors for the adoption of EDI appear to be rooted in tangible economic gains such as reductions in inventory and operating costs and intangible benefits in the form of improved vendor relations and competitive advantage are also perceived as important antecedents of EDI use in the retail industry.

A review of the literature showed that there appears to be very little research undertaken on Electronic Data Interchange (EDI) adoption by small to medium sized business (SMEs) particularly in Singapore. This study is a preliminary attempt to quantify this area. Using a survey-based methodology, the research examined EDI adoption. Results indicate that Singapore SMEs confirm findings by some researchers that EDI adoption is significantly associated with a firm’s annual sales but is not significantly associated with employee size as other studies have shown (Rogers, Daugherty, & Stank, 1992). This study is at odds with previous single-dimension EDI adoption studies indicating a significant relationship between firm size (annual sales) and EDI depth (Williams, Magee, & Suzuki, 1998). Organization size showed a significant relationship with the volume and diversity of EDI use but not with the depth and breadth. The most important reason for Singaporean SMEs to adopt EDI was pressure from their EDI-capable trading partners, treating pressure from their competitors as the least important.

지금까지 EDI의 연구는 EDI 도입과 성과에 초점이 맞추어져 왔다. 그러나 최근 EDI의 확산에 관한 연구가 증가하고 있다. 이 연구의 목적은 첫째, EDI 확산의 여러 요인을 찾고, 두 번째 EDI 확산 요인과 EDI 확산 정도와의 관계를 밝혀보고자 한다. 이러한 목적을 달성하기 위해 본 연구에서 채택된 두가지 방법론은 첫째, 선행연구들을 폭넓게 분석하여 모델을 구축하는 것이며, 둘째 EDI 확산요인을 탐색하는 실험적 연구방법이다. 본 연구가설을 검증한 결과 첫째, EDI 내부확산에 영향을 미치는 중요한 변수들은 최고경영자의 지원, 업무범위, 정보기반, 적합성, 복잡성, 상대적 이익, 경쟁정도, 거래상대방 압력을 들 수 있고, 둘째 EDI의 외부확산에 영향을 미치는 주요 변수들은 최고 경영자의 지원, 업무범위, 정보기반, 적합성, 상대적 이익, 경쟁정도, 거래상대방 압력 이다. 최고경영자의 지원, 업무 범위, 정보기반, 적합성, 상대적 이익, 경쟁 정도 그리고 거래상대방 압력이 EDI 내부확산과 외부확산에 동시에 영향을 미치는 것을 알 수 있다. Until now, most of studies on Electronic Data Interchange(EDI) have been focused on the introduction of EDI and the performance of EDI. But recently, there have been increasing researches on diffusion of Electronic Data Interchange. The aims of this study are twofold. First, to find the impacts of various factors on EDI diffusion, second, to examine the relationship between EDI diffusion factors and EDI diffusion degree. To accomplish those aims of study, two kinds of methodologies are adopted in the studies, First, model building by wide investigation on previous papers, Second, empirical research for finding the determinants of diffusion of EDI. The results of testing the hypotheses of this research are summarized as follows. First, The important EDI diffusion variables influencing internal diffusion of EDI consist of top management support, scope for EDI, IS sophistication, compatibility, complexity, relative advantages, competition intensity and external pressure. Second, Top management support, scope for EDI, IS sophistication, compatibility, relative advantages, competition intensity and external pressure are associated with external diffusion of EDI. We are aware of the important fact that top management support, scope for EDI, IS sophistication, compatibility, relative advantage, competition intensity and external pressure were simultaneously associated with internal and external diffusion of EDI.

Although the potential for EDI (Electronic Data Interchange) to improve performance of firms involved in industry value chain is widely known, little evidence regarding improved performance for the entire supply channel has been reported. Some researchers have found that EDI networks can benefit EDI champion, but it remains largely unclear whether EDI adopters—who are often coerced to implement the electronic networks by the champion—gain similar payoffs from their EDI investments. To measure impacts of EDI investments for the EDI adopters, we have investigated the performance of 31 grocery retail chains (EDI adopters) that implemented EDI networks with Campbell (EDI champion) for a supply channel reengineering innovation known as “continuous replenishment process.” Analysis of daily data on inventory and stockouts levels for the 31 retail chains demonstrates that these EDI adopters have achieved a significant increase in their inventory turns while simultaneously reducing stockouts as a result of this EDI-enabled supply channel reengineering. This paper thus provides empirical evidence that EDI adopters can achieve dramatic performance improvements if EDI networks are used for interfirm process reengineering.

In response to international competition and pressure from retailers, US apparel manufacturers and their suppliers initiated the Quick Response (QR) program. QR seeks to provide retailers with the exact stock‐keeping units (SKUs) which consumers demand and to deliver these SKUs quickly. An effective QR program requires rapid transmission of data throughout the value chain, from the retailer back to apparel manufacturers, fabric producers and fibre manufacturers. Therefore, electronic data interchange (EDI) is a key component of QR and should be tightly linked with other information systems at each level of the value chain. This research is an empirical study of the degree to which EDI has been implemented by US apparel manufacturers and the extent to which EDI is integrated with other information systems. It was found that apparel manufacturers use EDI to establish tight linkages with their customers, the retailers. Manufacturers are less likely to increase their own efficiencies by linking EDI with internal information systems or by establishing EDI linkages with suppliers. The lack of supplier linkages may reduce manufacturers' ability to replenish retail inventories quickly, which is the primary objective of QR.

A recent survey of electronic data interchange (EDI) managers and their key end users finds that, although EDI managers are somewhat more optimistic about EDI than their end users, there are few significant differences of opinion. Interestingly, both believe that their firms have realized indirect benefits from EDI such as improvements in competitive advantage more than direct cost reductions. With regard to compatibility, EDI managers believe that there were fewer disruptions and that users learned to use EDI faster than did users.

A model of EDI integration and strategic business reengineering

Replacing the traditional paper mode of communication by Electronic Data Interchange (EDI) between trading partners opens up a great deal of opportunities. Similar to other information technologies, however, the mere implementation of EDI does not guarantee a windfall. A series of studies over the past six years at Carnegie Mellon University has attempted to identify the necessary conditions for realizing EDI benefits. This report will summarize two major lessons learnt from this research program. The first lesson is that the implementation of EDI does not automatically generate strategic advantage for a supplier. A closer look at the EDI system characteristics is necessary to fully understand the potential for strategic benefits of EDI. The second lesson emphasizes that EDI can lead to operational benefits through changes within the internal processes in an organization. The key to realizing these benefits lies in the specific transaction sets implemented and the level of EDI integration.

For many large retail companies with many suppliers, the utopian vision of total paperless trading offered by traditional electronic data interchange (EDI), with its attendant efficiencies, has not been realized. Many small but operationally important suppliers lack enthusiasm for traditional EDI because it is expensive, complicated and they stand to gain little from it. This non-compliance prevents the large organization from realizing some of the most significant tactical benefits of EDI such as advanced supply chain reforms. This paper presents a case study of a large retail organization which is approaching this problem by integrating Internet-based EDI with its existing traditional EDI systems using an intelligent gateway. The case study is used to generate propositions about the future significance of Internet EDI.

Factors affecting the implementation of electronic data interchange in Korea

Nowadays, the Electronic Data Interchange (EDI) is considered an indispensable tool for interchanging data and transactions between auto parts and vehicle companies. Since the decade of 80, the EDI was adopted by automobile industry and this process was led by vehicles manufacturers that had determined the adoption of this system for their supcliers. This research carried through an exploratory survey, to analyze how the implantation and use of the EDI, in the automobile industry, has been occurred, under the point of view of small and average companies of the sector, having observed positive and negative aspects associated to the implantation through five theoretical models that deal with the EDI and the Interorganizational Systems (IOS). Regarding to the stage of implementation of the EDI (model of Lummus & Duclus) it was observed that the companies are in the period of transaction, with low level of integration with internal systems. The amplitude of partners (model of Tuunainem) with that the companies carry through EDI are small, and the type of appropriation (model of Subramani) is exploitation. The analysis of the interorganizacionais relations (model of Bensaou and Venkatraman) disclosed that much few areas use this technology, and that the vehicle manufacturer use the coercitive power in the implantation process. Although this, the interviewed ones consider that exists reliable in the relation b its companies and vehicle manufacturer. Based on this survey, we verified that the characteristics and benefits gotten with the use of systems EDI for the studied companies of auto parts are very small, compared with the models.

Firms are increasingly using collaborative systems to enhance supply-chain visibility. A key emphasis of these interorganizational systems (IOS) is to improve the coordination between buyers and suppliers through electronic integration. While such IOS integration is purportedly good, because it tightens linkages in the supply chain, it is not clear whether it is the best configuration under all conditions. A review of literature on adoption and use of electronic data interchange (EDI) systems (a type of IOS) shows that this issue has been examined from multiple theoretic perspectives. Researchers have examined how contingencies related to technology, organization, and environment shape EDI use. Limited attention has been directed toward understanding how conditions under which transactions are conducted impact the use of IOS. We argue that transactional characteristics are important antecedents to IOS integration and propose that demand uncertainty, complexity, market fragmentation, and market volatility capture key characteristics. These factors coupled with an open information-sharing environment are hypothesized to influence IOS integration. Data collected from the electronics industry is used to examine the research model. Results show that firms tend to deploy integrated IOS when complexity of the component is high, market fragmentation is low, and an open information-sharing environment exists. Thus, from a managerial perspective, IOS integration is the appropriate configuration under conditions of high product complexity and open information-sharing environment, but it precludes the firm from participating in the open market and gaining brokerage benefits.

To compete effectively in today’s global marketplace,a company must have a competitive supply chain. A competitive supply chain requires an ability to communicate rapidly and accurately. Electronic Data Interchange(EDI) is one method that world class organizations have successfully used to improve the communication of orders and design changes. However, the growth in use of EDI has been much slower than projected. This article discusses the results of a survey to identify some of the barriers to the use of EDI and some possible methods to overcome those barriers. The results of this study show that organizational resistance to change is lower for EDI users than for non users. The results further indicate that awareness of technical issues is higher for EDI users. Suggestions regarding how to help overcome the barriers to using high technology innovations such as EDI are provided.