Electronic data interchange implementation and its influence on supply chain performance

Abstract

The goal of the master thesis is to assess the influence of the EDI on the supply chain performance. This study addresses the key issue by exploring the operational and organizational performance as a pay-off derived from strategic EDI initiatives with particular attention to the drivers of the technology implementation. The adoption of EDI technology from the supply chain management perspective is examined. Literature review shows the lack of thorough quantitative investigation of the influence of EDI implementation on the supply chain performance. Structural equation modeling allows assessing the effect of an EDI technology involvement. The decomposition of effects into their direct and indirect components is theoretically important since it enables to role the importance of EDI implementation within the supply chain. Decision makers should be aware that the global competitiveness cannot be reached without operational and organizational performance excellence. Findings suggest that the decision to invest in the project of EDI implementation should be made. Analysis indicates that EDI technology involvement appears to be associated with demand uncertainty and size in a short term context and connectivity with customers via the informational exchange. According to the significance of paths the results from the implementation have an influence on the operational performance. Moreover, the impact on the organizational performance can be decomposed into direct impact of the EDI and indirect – through operational performance as an intermediate variable. The results are in line with previous qualitative researches. However, demand uncertainty appears to be negatively related with EDI technology involvement that can be explained by the resistance of Russian companies to change and environment protected by governmental policies and trade barriers. Right away from joining WTO it is crucial not to underestimate the benefits of new technologies adoption and value of time.