The role of intermediating institutions in the diffusion of electronic data interchange (EDI): How industry associations intervened in Denmark, Finland, and Hong Kong

Electronic data interchange (EDI) provides means for interorganizational co mmunication, creates network externalities, requires an advanced informatio n technology (IT) infrastructure, and relies on standards. In the diffusion of such innovations, institutional involvement is imperative. Such institu tions contain governmental agencies, national and global standardization or ganizations, local government, and nonprofit private organizations like ind ustry associations. The last type of organizations we call intermediating i nstitutions. They intermediate or coordinate ("inscribe") the activities of a group of would-be adopters. Unfortunately, little is known of how these organizations shape the EDI diffusion trajectory. In this article we examin e one specific type of intermediating organizations-industry associations-a nd how they advanced the EDI diffusion process in the grocery sectors of Ho ng Kong, Denmark and Finland. We identify six institutional measures, place d into a matrix formed by the mode of involvement (influence vs. regulation ) and the type of diffusion force (supply push vs. demand pull), that can b e mobilized to further the EDI diffusion. Industry associations were found to be active users of all these measures to varying degrees. Their role was critical especially in knowledge building, knowledge deployment, and stand ard setting. Furthermore, institutional involvement varied due to policy an d cultural contingencies and power dependencies.