Impact of standardization on EDI in B2B development
| Date | 01 January 2004 |
| Published date | 01 January 2004 |
| Pages | 68-77 |
| DOI | https://doi.org/10.1108/02635570410514106 |
| Author | Chang‐tseh Hsieh,Binshan Lin |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Impact of
standardization on EDI
in B2B development
Chang-tseh Hsieh and
Binshan Lin
Introduction
Electronic data interchange (EDI) is about the
electronic commerce applications and
solutions to improve the efficiency and to
reduce the cost of business trading. The
technology has been adopted by many
businesses worldwide as a vehicle to eliminate
paper works associated with business
transactions, thereby eliminating errors caused
by entering data manually. Various forms of
using EDI in industry have been examined
(Jun et al., 2000).
Recently, industry giants such as Wal-mart
and Home Depot have proposed moving EDI
operations to the Internet in response to the
maturity of the development of XML (Fearon
and Philip, 1999; Karpinski, 2002). The
EDI/XML combination could further stimulate
the use of EDI in business to business (B2B)
communications. Most EDI project initiations
stem from the big companies that want to
benefit from the implementation of just-in-time
inventory management systems (Schwartz,
2000; Dresner, 2001; Pond, 2001). The tool
has shown good promise for companies
considering the implementation of an online
procurement system (Attaran, 2001; Hsieh
et al., 2002)
To suppliers of those big companies, EDI
might provide some benefits. Once
implemented the business value of EDI
appears promising since EDI is applicable
in functional areas ranging from management
to logistics. Hence, it creates a temporarily
competitive advantage for adopting
organizations by optimizing internal
routines (Benjamin et al., 1990;
Mukhopadhyay and Kekre, 1995; Young et
al., 1999; Douglas, 2002). However, the
companies that adopted this technology,
especially those forced to adopt it, could face
many problems, which must be dealt with
before the benefits of EDI can be realized
(Emmelhainz, 1990; Iacovou and Benbasat,
1995; Heikkinen and Sarkis, 1996; Angeles
et al., 2001). Company structure, workflow,
vendor relationship, and industrial practice
are all affected by EDI.
This paper investigates how the
standardization on EDI might affect B2B
development in the real world of business. A
The authors
Chang-tseh Hsieh is a Professor at the University of
Southern Mississippi, Hattiesburg, Mississippi, USA.
Binshan Lin is a Professor at the Louisiana State University
± Shreveport, Shreveport, Louisiana, USA.
Keywords
Electronic data interchange, Business-to-business marketing,
Business development
Abstract
This paper investigates how the standardization on
electronic data interchange (EDI) might affect B2B
development in the real world of business. EDI technique
has been evolved to become a very important technique
with a lot of potential benefits. Its impacts on organizations
both socially and economically are explored, together with a
detailed discussion of the roles of XML in EDI.
Electronic access
The Emerald Research Register for this journal is available at
www.emeraldinsight.com/researchregister
The current issue and full text archive of this journal is
available at
www.emeraldinsight.com/0263-5577.htm
68
Industrial Management & Data Systems
Volume 104 .Number 1 .2004 .pp. 68-77
#Emerald Group Publishing Limited .ISSN 0263-5577
DOI 10.1108/02635570410514106
To continue reading
Request your trial