ELECTRONIC DATA INTERCHANGE AND SMALL ORGANIZATIONS - ADOPTION AND IMPACT OF TECHNOLOGY

Many EDI researchers and practitioners have recognized the importance of high penetration levels for the success of EDI. Unfortunately, such penetration is partly impeded by the resistance of small companies to become EDI capable. To investigate this issue, three major factors ar e identified that influence the EDI adoption practices of small firms. These factors are: organizational readiness (because of the low level s of IT sophistication and resource availability of small firms), exte rnal pressures to adopt (because of the weak market positions of small firms and the network nature of the technology), and perceived benefi ts (because of the limited impact that IT has on small firms due to un der-utilization and lack of integration). By combining the anticipated effects of these factors, we developed a framework of EDI adoption by small businesses. The applicability of this framework is empirically demonstrated using the results of seven case studies. Finally, recomme ndations are made for the development of successful EDI partner expans ion plans. These include the development of a long-term EDI partner ex pansion plan from the very beginning, the individual assessment of eac h partner's EDI preparedness level, and the selection of appropriate i nfluence tactics to expedite adoption by small partners. Specifically, if is suggested that EDI initiators pursue promotional efforts to imp rove partners' perceptions of EDI benefits, provide financial and tech nological assistance to partners with low organizational readiness, an d carefully select and enact influence strategies to reduce resistance .