P. Hart et C. Saunders, POWER AND TRUST - CRITICAL FACTORS IN THE ADOPTION AND USE OF ELECTRONIC DATA INTERCHANGE, Organization science, 8(1), 1997, pp. 23-42
Computer networks are an increasingly important technology for improvi
ng the efficiency of information processing and providing shared acces
s to information resources. Because computer networks are increasingly
being used to support the flow of information between and within orga
nizations, their use both influences and has consequences for interorg
anizational relationships. An important and widespread application of
interorganizational computer networks is Electronic Data Interchange (
EDI), which refers to the computer-based exchange of standardized busi
ness-related information between buyer and supplier firms. The followi
ng theoretical framework addresses the role that power and trust play
in EDI adoption and use. Firms with greater power can influence their
trading partners to adopt EDI. But power can be exercised in different
ways. Because computer networks provide a way for certain information
to be: more accessible to outside parties, their use makes organizati
onal boundaries more permeable. When firms use coercive power to force
trading partners to adopt EDI, less powerful partners may be left mor
e vulnerable. And, over time this perceived vulnerability becomes a co
nstraint in interorganizational relationships that prevents improvemen
ts in coordination through expanded use of EDI. On the other hand, whe
n the event of EDI adoption is viewed as an opportunity to build and r
einforce trust between firms, the relationship is able to support orga
nizational changes (e.g., restructuring operational processes or new m
odes of distribution) related to EDI use which contribute to improving
interorganizational coordination. The role of power and trust in EDI
adoption has important implications for interorganizational theory. Th
eir role may be especially helpful in understanding how technology, an
d, in particular, electronic media support strategic alliances that fi
rms create to advance mutual goals.