- Volume 7 Issue 1
Electronic Data Interchange(EDI) is a relatively new technique around the world and enables the firm more competitive because of transmitting computer-generated documents directly to a firm's trading partner's computer across a telecommunication network. This study investigates the relationship among the organizational characteristics and information systems(IS) maturity, and the extent of internal and external diffusion of Electronic Data Interchange (EDI) in Korean firms. The data for this study were collected from 131 firms that have implemented EDI. The results of t-test show that subgroups classified by industry, the extent of decentralization and formalization, and IS maturity, except the size of organization, are not different in the extent EDI diffusion. Also, the results of multiple regression analysis show that the size of organization is the major predictor of internal diffusion, and IS maturity and the size of organization are the major predictors in external diffusion of EDI. This study implies that the size of organization among organization characteristics and IS maturity should be considered as important variables for the diffusion of EDI system.