The Diffusion of Electronic Data Interchange

This book documents the research I conducted on the subject of Electronic Data Inter­ change during my time at the Institute of Business Informatics, University of Berne, Switzerland. In this effort I enjoyed a great deal of help from numerous others, in­ cluding professional colleagues, interview partners, and members of my family. Even though I cannot possibly mention them all, I would like to express my sincere gratitude for their selfless support. Above all, I am grateful to Prof. Dr. Gerhard Knolmayer who contributed to the book both in its formative stages and throughout its development. He has been an unwavering source of encouragement during the many difficult stages of the investigation and I greatly benefitted from our discussions of the subject matter. Moreover, he was ex­ tremely generous with his time in carefully reviewing all the five chapters. The fmancial support for this book came from the Hasler Foundation in Berne. I wish to thank the Foundation, and especially its Managing Director, Dr. P.A. Jaeger, for funding the empirical part of the research project. Likewise, I am grateful to the Uni­ versity of Berne for providing me with the necessary computer and other resources. The Institute of Business Informatics should be commended particularly for its very stim­ ulating work environment.

Inhalt

1. Introduction.- 1.1. Research Problem.- 1.2. Prior Research on Electronic Data Interchange.- 1.3. Main Goals of Research.- 1.4. Organization of Research.- 2. Electronic Data Interchange.- 2.1. Introduction.- 2.2. Foundations of EDI.- 2.2.1. Communication Theory.- 2.2.1.1. A Communication Model.- 2.2.1.2. Semantic Aspects of Communication between Human Agents.- 2.2.2. Database Theory.- 2.2.2.1. Database Architecture.- 2.2.2.2. Data Dictionary.- 2.2.3. EDI Communication Model.- 2.2.4. Concepts Related to EDI.- 2.2.4.1. Electronic Mail.- 2.2.4.2. Online Database Communication.- 2.2.4.3. Distributed Databases.- 2.2.4.4. Office Document Interchange.- 2.3. Requirements of EDI.- 2.3.1. Message Standards.- 2.3.1.1. Character Standards.- 2.3.1.2. Data Element Standards.- 2.3.1.3. Syntax Standards 46 2.3.1.3.1. ANSIX12.- 2.3.1.3.2. EDIFACT.- 2.3.1.3.3. Other Syntax Standards.- 2.3.2. Systems.- 2.3.2.1. Hardware.- 2.3.2.2. Software.- 2.3.3. Message Delivery.- 2.3.3.1. Conventional Methods.- 2.3.3.2. Using Value Added Network and Services.- 2.3.3.3. Using X.400.- 2.3.4. Operational Requirements.- 2.3.4.1. Object Identification.- 2.3.4.2. Legal Certainty.- 2.4. Business Implications of EDI.- 2.4.1. Overview.- 2.4.2. Direct Effects.- 2.4.2.1. Costs.- 2.4.2.2. Benefits.- 2.4.2.2.1. Reduced Transaction Costs.- 2.4.2.2.2. Improved Cash Flow.- 2.4.2.2.3. Reduced Inventory Levels.- 2.4.3. Indirect Effects and Opportunities.- 2.4.3.1. General Remarks.- 2.4.3.2. Customer Relation.- 2.4.3.3. Internal Efficiency.- 2.4.3.4. Supplier Relation.- 2.4.4. EDI and Just-In-Time.- 2.4.5. Conclusions.- 2.5. Utilization of EDI in Practice.- 2.5.1. Evolution of Standards.- 2.5.2. The Diffusion of EDI in Practice.- 2.5.3. A Sample EDI Application.- 3. The Aspect of Diffusion.- 3.1. Network Externalities.- 3.2. Diffusion of Innovations.- 3.2.1. Diffusion of Conventional Innovations.- 3.2.1.1. Introduction.- 3.2.1.2. The Pattern of Diffusion.- 3.2.1.3. The Rate of Diffusion.- 3.2.1.4. The Implementation Aspect of Diffusion.- 3.2.2. Diffusion of Innovations with Significant Network Externalities.- 3.3. Implications for the Diffusion of EDI.- 3.4. EDI Diffusion Research Framework.- 4. Empirical Investigation on Electronic Data Interchange.- 4.1. Project Overview.- 4.1.1. Introductory Remarks.- 4.1.2. Research Objectives.- 4.1.3. Research Hypotheses.- 4.1.3.1. Hypotheses Relative to Business Implications of EDI.- 4.1.3.2. Hypotheses Relative to Communication Aspects of EDI.- 4.1.3.3. Hypotheses Relative to Adoption, Implementation, and Diffusion of EDI.- 4.1.4. Research Design.- 4.1.4.1. Research Methodology.- 4.1.4.2. Empirical Referents of Research Variables.- 4.1.4.3. Data Analysis Methods.- 4.2. Preliminary Field Study.- 4.2.1. Study Objectives.- 4.2.2. Administration of Field Study.- 4.2.3. Findings of Field Study.- 4.3. Sample Survey.- 4.3.1. Identification of Research Population.- 4.3.2. Classification of Survey Participants.- 4.3.2.1. Industry Sector and Geographical Area.- 4.3.2.2. Functional Area and Hierarchical Position of Respondents.- 4.3.2.3. Organizational Size.- 4.3.2.4. Length of EDI Utilization.- 4.3.2.5. Volume of EDI Communication.- 4.3.2.6. Other Classification Criteria.- 4.3.3. Assessment of Sample Representativeness.- 4.3.4. Survey Findings and Hypotheses Testing.- 4.3.4.1. EDI-Decision Stage.- 4.3.4.2. Costs of EDI.- 4.3.4.2.1. Tangible Costs.- 4.3.4.2.2. Overview of Actual Costs Incurred.- 4.3.4.2.3. Intangible Costs.- 4.3.4.3. Benefits of EDI.- 4.3.4.3.1. Tangible Benefits.- 4.3.4.3.2. Intangible Benefits.- 4.3.4.4. Role of Value-Added Networks and Services.- 4.3.4.5. Diffusion and Future Evolution of EDI.- 5. Summary and Conclusions.- 5.1. Research Summary.- 5.2. Research Conclusions.- 5.2.1. Conclusions Relative to Business Implications of EDI.- 5.2.2. Conclusions Relative to Communication Aspects of EDI.- 5.2.3. Conclusions Relative to Adoption, Implementation, and Diffusion of EDI.- 5.3. Research Implications.- 5.4. Suggestions for Future Research.- List of Acronyms and Abbreviations.