Abstract

This studyassesses the ability of innovation diffusion theory to predict the adoption intention of organizations for financialEDI. Sixfactorspotentiallyaffectingadoptionintentionwerestudied:relativeadvantage,compatibility, complexity, observability, trialability, and risk (operational and strategic). Both present and future adoption intentions were measured. The questionnaire was developed using a process of conceptual construct validation. It was administered to three key employees of all participating organizations through a survey. Responses were subjected to a process of empirical construct validation. Results show that present adoption intention is dependent on complexity, operational risk, and strategic risk to a greater extent, and relative advantage and observability to a lesser extent. Future adoption intention is contingent upon complexity, observability, and strategic risk to a greater extent, and trialability to a lesser extent. These findings permit financial EDI operators to shape their marketing strategies to encourage adoption.

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