REAPING EDI BENEFITS THROUGH A PRO-ACTIVE APPROACH

EDI are emerging as a popular means for organizations to exchange trad e documents that accomplish business transactions. This study examines the impact of Tradenet, a well-known system in Singapore, on the effe ctiveness and efficiency of its participants. Organizational effective ness was measured in terms of international competitiveness, inventory control, and customer quantity. Organizational efficiency was gauged using preparation cost, exchange cost, and document flow. A survey was carried out on Tradenet participants. The results show that all, irre spective of organizational characteristics, attained enhanced organiza tional efficiency by participating. Furthermore, participants that pla nned ahead, participated in Tradenet early, or integrated Tradenet wit h their internal MIS, benefited more in terms of increased organizatio nal effectiveness. The results suggest that organizations can reap gre ater benefits from their involvement in EDI by taking a proactive appr oach.