The Adoption of Electronic Data Interchange (Edi) Technology by Nigerian Smes a Conceptual Framework

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The Adoption of Electronic Data Interchange (EDI)
Technology by Nigerian SMEs: A Conceptual Framework
Maikudi Shehu Musawa
Department of Technology Management,
Faculty of Technology Management,
Business and Entrepreneurship,
University Tunn Hussein Onn Malaysia
1

Eta Wahab
Department of Technology Management,
Faculty of Technology Management,
Business and Entrepreneurship,
University Tunn Hussein Onn Malaysia
eta@uthm.edu.my

Abstract
In these days, the adoption of information technology
(IT) in business operations is no longer privilege to
large organizations Small-Medium-Enterprises (SMEs)
are also trying to adopt the IT in process of gaining the
benefits of using it. Nigerian SMEs have been slow to
adopt EDI due to perceived high cost of
implementation, lack of willing trading partners and
lack of awareness of EDI benefits. However, there has
been little research conducted and published on the
adoption of Electronic Data Interchange among SMEs
in Nigeria. Most previous researches done in the
context of developed countries. This study aimed to
examine factors affecting the adoption of EDI
Technology in Nigerian SMEs and to test an EDI
Technology adoption model to the Nigerian SMEs. A
model of lacovou et al., (1995) will used to test the
intention of SMEs in adopting EDI.
Key words: Technology adoption, EDI Adoption,
Nigerian SMEs

Electronic Data Interchange simply eradicates them by
automating the process and removing the paperwork
element. It increases accuracy by eliminating the rekeying of data. The quality of data is enhanced by agreeing product codes, prices and location codes in
advance. EDI also helps to cement customer/supplier
partnerships by reducing the supply chain costs
associated with manual processing. Adopting EDI
makes your trading relationships more cost effective
and easier to deal with.
With the introduction of EDI the following benefits
are expected: Faster exchange of data without errors,
reducing the communication costs; Streamlining
logistic processes, resulting in reduction of lead times,
on time delivery and inventory reductions; Improving
the competitive position, e.g. by creating new kinds of
services.

1. Introduction
Electronic Data Interchange (EDI) is a technology,
based on standards, which allow businesses to increase
the speed and quality of their communication and
decrease the costs dramatically. The technology is
available for more than a decade. Yet, the adoption rate
is extremely low.
Electronic data interchange (EDI) is the computer-tocomputer exchange of data in standardized, electronic formats between companies. Computer to computer
means “original application program to processing
application program. EDI is also a business strategy
utilizing technology to achieve business objectives and
enhance business relationships. EDI transactions, can
be exchanged between two companies (commonly
referred to as Trading Partners) anywhere in the world
within hours or minutes.

Khasawneh (2008) defines the meaning of technology
adoption as “…the first use or acceptance of a new
technology or new product”. Some researchers identify
that the adoption process starts from election
procedures when a firm is aware of the need to
purchase a technology, while other scholars focus more
on real usage when the technology is about to be
utilized or implemented. Technology adoption is a
voluntary individual behavior that explains
by
behavioral theories such as: the theory of reasoned
action (TRA) proposed by Fishbein and Ajzen (1975),
theory of planned behavior (TPB) proposed by Ajzen
(1991) technology acceptance model (TA M) proposed
by Davis (1989), and Venkatesh et al. (2003)
developed the Unified Theory of Acceptance and Use
of Technology (UTAUT) which combines eight
theoretical models including the TAM and TPB.

1.1 Why adopt EDI?
EDI comes into its own when repetitive manual tasks
are required to support a...
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