Adoption of interorganizational system standards in supply chains. An empirical analysis of RosettaNet standards
| Date | 25 April 2008 |
| DOI | https://doi.org/10.1108/02635570810868371 |
| Published date | 25 April 2008 |
| Pages | 529-547 |
| Author | Alain Yee‐Loong Chong,Keng‐Boon Ooi |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Adoption of interorganizational
system standards in supply chains
An empirical analysis of RosettaNet standards
Alain Yee-Loong Chong
Faculty of Computing and IT, INTI International University College,
Putra Nilai, Malaysia, and
Keng-Boon Ooi
Faculty of Management, Multimedia University, Cyberjaya, Malaysia
Abstract
Purpose – This study aims to empirically examine the factors that affect the adoption of RosettaNet
standards. The four factors examined in this study are partners’ power, trust, products’ characteristics,
and government influence.
Design/methodology/approach – Original research using a self-administered questionnaire that
was distributed to 400 Malaysian electrical and electronics (E&E) organizations. The hypotheses were
tested by employing binary logistic regression analysis.
Findings – The results show that partners’ power, trust, and products’ characteristics have
significant and positive effects on the adoption of RosettaNet standards.
Research limitations/implications – The generalisability of the findings is limited as the study
focuses only on E&E industry in Malaysia.
Practical implications – Organizations planning to adopt RosettaNet standards will be able to
make managerial decisions based on the findings from this research.
Originality/value – The findings made a contribution in terms of creating an understanding of the
influence of the adoption of RosettaNet standards. This study has filled previous research gap by advancing
the understanding betweenthe association of adoption factorsand RosettaNet standards adoption.
Keywords Standards, Dataanalysis, Electronic commerce,Malaysia
Paper type Case study
Introduction
The current business environment is getting more competitive and organizations are
increasinglyfocusing on operatingas efficient as possible.One way for organizationsto be
efficient and achievecompetitive advantages overtheir rivals is to implement an efficient
and effective supply chain management (SCM) (Jharkharia and Shankar, 2005). An
effectiveand efficient supplychain will have benefits such as reducedinventories, increase
inventoryturns, reduce cost, and increasecustomer service(Serve et al., 200 2). One enabler
for an effective and efficient SCM is to implement a collaborative SCM system. In a
collaborativesupply chain environment, the supply chainmembers work together, share
important information, and collaborate on activities efficiently and effectively (Kim and
Smari, 2005).The implementation of a collaborative SCMsystem needs the integration of
business processes and information exchanges which ha s been facilitated by
interorganizational system (IOS). IOS enables information flow to be automated
between organizations which is the requirements for a collaborative SCM. However, in
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm
Adoption of
RosettaNet
standards
529
Received 28 October 2007
Revised 7 January 2008
Accepted 25 January 2008
Industrial Management & Data
Systems
Vol. 108 No. 4, 2008
pp. 529-547
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570810868371
order for the information to be exchanged through different systems, a standard that
enables the communications between the systems is needed. The pre-eminent IOS
standards for the electrical and electronics (E&E) industry have been electronic data
interchange (EDI)standards (X12) (Nelson and Shaw, 2003). EDI has beenused by E&E
organizations for “information exchange such as sending requisition and receiving
purchasing orders.” (Chou et al., 2004, p. 343). EDI allows the exchange of documents in
standardizedEDI messages between computerswithout the needs of human intervention.
EDI does not only cover the exchange of data, but the data exchanged must be in the
agreed standardized format between twosupply chain participants.
The recent emergence of internet technologies such as eXtended markup language
(XML) and web services have further contributed to the development of IOS standards.
XML is a method for defining structure in documents. The idea behind XML is that
information (text, images, and other parts) of documents can be identified through a set
of rules. Examples of current XML-based IOS standards available include petroleum
industry data exchange used in the petroleum and oil industry and standards for
technology in automotive retail used in automotive industry. The main IOS standards
used by E&E organizations are EDI and RosettaNet standards.
Overview of RosettaNet standards
RosettaNet is a non-profit standard consortium for high-technologies industry
consisting of more than 500 IT, electronic components, semiconductor manufacturing
and solution provider companies working to create, implement and promote e-business
process standards. RosettaNet has one of the largest number of organizational
members among supply chain standards consortia with more than 7,000 organizations
reportedly using RosettaNet standards (Nelson et al., 2005; Choudhury, 2004).
Governments, especially those in Asia, have been openly supportive of RosettaNet.
About 50 percent of RosettaNet standards implemented are in Asia (Malakooty, 2005).
The e-business standard developed by RosettaNet is known as RosettaNet
standards. RosettaNet standard provides a common platform of communication
that enable different trading partners involved in a business process to automate that
process and to conduct it over the internet (Badakhchani, 2004). RosettaNet standards
consist of three core areas. The core areas are:
(1) Partner interface processes (PIP).
(2) RosettaNet implementation framework (RNIF).
(3) RosettaNet business and technical dictionaries.
Organizations which want to adopt RosettaNet standards with their supply chain
partners will be connected through a PIP connection. A PIP is defined as a specialized
system-to-system XML-based dialog that depicts the activities, decis ions and
interactions that fulfill a business transaction between two partners in a supply
chain. Each PIP specification has a business document template and a diagram of the
business process (Malakooty, 2005). The PIPs messages are sent to the trading
partners via network connections. RosettaNet divides the PIPs into seven clusters
based on their business function. Each of these clusters contains subcategories known
as segments which further group the PIPs as shown in Table I.
The RNIF is the framework on which the partnerstransmit a PIP. RNIF provides the
exchange protocolsfor the implementation of RosettaNetstandards such as the security,
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