ELECTRONIC DATA INTERCHANGE IN DEVELOPING COUNTRIES: LESSONS FROM SOUTH AFRICA

Electronic Data Interchange plays an important role in improving organizational competitiveness. This research uses empirical evidence to evaluate the state of EDI and the willingness of SMEs to connect electronically to a large distribution centre in South Africa. Practitioners of EDI are aware of the necessity for high penetration levels to make EDI successful. Furthermore, it investigates the EDI adoption rate from the viewpoint of a small business. However, penetration might be hindered by the refusal of small firms to accept EDI. Based on prior research this model incorporates four factors that are hypothesized to have an influence on EDI Adoption. This survey was concerned about four potential strategies for achieving business objectives namely: organizational readiness, external pressure, perceived benefits and security. Data was collected from 105 firms who responded to an e-mail survey. The findings reveal that external pressure was the strongest positive factor associated with the intent to adopt EDI. No support was found for security. In addition, it suggests that there is a general need for more managerial support as well as compatibility with systems among small firms. Finally, these findings add support to the importance of diffusion of Innovation theories, Interorganizational Systems and Technology Acceptance Models.