The relationship among formal EDI controls, knowledge of EDI controls, and EDI performance

Abstract

As new technologies and software applications are supplanting traditional electronic data interchange (EDI) applications, new fraud concerns due to the ubiquitous connectivity of the Internet have increased the interest in EDI controls. Traditional outcome (or process)-oriented views of (formal) control should be supplemented by knowledge management considerations, and user knowledge of contents control and its importance should be enhanced in order to maximize performance. This research addresses the indirect effect of EDI control usage levels on EDI performance through knowledge enhancement. EDI controls were categorized as internal and third-party in order to highlight their internal and external aspects in interorganizational systems. Knowledge of controls has two parts: knowledge of control content and an understanding of control importance. The research model was empirically tested using a structural equation modeling approach with data collected from Korean companies that have adopted EDI. The results indicate that knowledge plays an important role in mediating the effect of controls on performance. That is, EDI adopters can achieve operational and competitive benefits from high levels of knowledge in relation to control content and its importance.

Medidas de la eficacia de los sistemas de intercambio electrónico de datos basados en la especificación ASD 2000M

“…For example, some researchers have proposed investigating in areas such as the key drivers for performance improvements across different industries [Zhang et al, 2010], while others have recommended examining the industry and organizational characteristics affecting the performance of EDI [Lee, Kim & Lee, 2004]. [Lee & Lee, 2010] suggested that future studies could examine the relations between formal and informal controls to avoid fraud and performance, and [Arunachalam, 2004] proposed examining the influence of power and trust between firms in influencing EDI effectiveness; they also recommended to approach individual users to elicit perceptions of EDI use. [Li & Williams, 1999] indicated the need for further research on inter-firm applications based on inter-firm networks, and they also recommended business leaders to understand the potential benefits and pitfalls of these innovations before introducing them.…”