Electronic.Data. Interchange
EDI is one type of B2B e-business which allows the internal system of one business
to transact with the internal system of another business for the exchange of
electronic documents (Hasselbring & Welgand, 2001). The technology is designed
to replace the expenditure, effort, and time incurred by paper-based business transactions
(Shim, Pendyala, Sundaram, & Gao, 2000). Senn (1998) describes EDI as
a favoured technology for implementing interorganisation systems. EDI has been
shown to produce error-free current information, while handling a large volume of
transactions eliminating some clerical tasks by automation of those tasks (Lu & Wu,
2004; Strader, Lin, & Shaw, 1999; Turban et al., 2004; Witte, Grunhagen, & Clarke,
2003). The automation of tasks gives EDI the ability of speeding up information
transfer (Lu & Wu, 2004). EDI is an important element in allowing B2B e-commerce
to take place, with Angeles (2000) declaring that EDI is one of two building
blocks the other being electronic payments.
The diffusion rate of traditional EDI has been slow (Angeles, 2000; Senn, 1998)
despite its advantages due to the cost of implementation and the balance of power
skewed with one organisation dictating trading terms (Angeles, 2000).
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