Skip to main content
SpringerLink
Log in

The relationship among formal EDI controls, knowledge of EDI controls, and EDI performance

  • Published:
Information Technology and Management Aims and scope Submit manuscript

Abstract

As new technologies and software applications are supplanting traditional electronic data interchange (EDI) applications, new fraud concerns due to the ubiquitous connectivity of the Internet have increased the interest in EDI controls. Traditional outcome (or process)-oriented views of (formal) control should be supplemented by knowledge management considerations, and user knowledge of contents control and its importance should be enhanced in order to maximize performance. This research addresses the indirect effect of EDI control usage levels on EDI performance through knowledge enhancement. EDI controls were categorized as internal and third-party in order to highlight their internal and external aspects in inter-organizational systems. Knowledge of controls has two parts: knowledge of control content and an understanding of control importance. The research model was empirically tested using a structural equation modeling approach with data collected from Korean companies that have adopted EDI. The results indicate that knowledge plays an important role in mediating the effect of controls on performance. That is, EDI adopters can achieve operational and competitive benefits from high levels of knowledge in relation to control content and its importance.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

References

  1. Albrecht CC, Dean DL, Hansen JV (2005) Marketplace and technology standards for B2B e-commerce: progress, challenges, and the state of the art. Inf Manag 42:865–875

    Article  Google Scholar 

  2. Anderson J, Gerbing D (1988) Structural equation modeling in practice: a review and recommended two-step approach. Psychol Bull 103(3):411–423

    Article  Google Scholar 

  3. Attewell P (1992) Technology diffusion and organizational learning: the case of business computing. Organ Sci 3(1):1–19

    Article  Google Scholar 

  4. Banerjee S, Golhar DY (1994) Electronic data interchange: characteristics of users and nonusers. Inf Manag 26:65–74

    Article  Google Scholar 

  5. Baskerville R (1988) Designing information systems security. Wiley, Chichester, UK

    Google Scholar 

  6. Benesko G, Teplitzky P (1994) Security and controls for EDI. Inf Syst Secur Summer:15–19

  7. Benesko G, Teplitzky P (1995) EDI integrity controls. Inf Syst Secur Winter:21–25

  8. Blumstein A, Cohen J, Nagin D (1978) Deterrence and incapacitation: estimating the effects of criminal sanctions on crime rates. National Academy of Sciences, Washington, DC

    Google Scholar 

  9. Chan S, Govindan M, Picard JY, Leschiutta E (1993) EDI for managers and auditors. Electronic Data Interchange Council of Canada, Toronto, ON

  10. Chircu A, Kaufman RJ (2000) Reintermediation strategies in business-to-business electronic commerce. Int J Electron Commerce 4(4):7–42

    Google Scholar 

  11. Chwelos P, Benbasat I, Dexter AS (2001) Research report: empirical test of an EDI adoption model. Inf Syst Res 12(3):304–321

    Article  Google Scholar 

  12. Computer Security Institute (CSI) (2008) CSI/FBI computer crime and security survey. CMP Media LLC. http://www.gocsi.com/forms/csi_survey.jhtml

  13. Crook CW, Kumar RL (1998) Electronic data interchange: a multi-industry investigation using grounded theory. Inf Manag 34:75–89

    Article  Google Scholar 

  14. Davenport TH, Klahr P (1998) Managing customer support knowledge. Calif Manag Rev 40(3):195–208

    Google Scholar 

  15. Dhillon G, Backhouse J (1996) Risks in the use of information technology within organizations. Int J Inf Manag 16(1):65–74

    Google Scholar 

  16. Dodgson M (1994) Organizational learning: a review of some literatures. Organ Stud 14(3):375–394

    Article  Google Scholar 

  17. Down A (2002) Integrating EDI systems across and beyond your enterprise. IBM White Papers, Somers, NY (available at www-3,ibm.com/software/integration/wdi/library/whitepapers/edi_v1c.pdf)

  18. Emmelhainz MA (1990) Electronic data interchange: a total management guide. Multiscience Press, Inc, Van Nostrand Reinhold, New York

    Google Scholar 

  19. Frank J, Shamir B, Briggs W (1991) Security-related behavior of PC users in organizations. Inf Manag 21:127–135

    Article  Google Scholar 

  20. Guha S, Grover V, Kettinger WJ, Teng JTC (1997) Business process change and organizational performance: exploring an antecedent model. J Manag Inf Syst 14(1):119–154

    Google Scholar 

  21. Hamel G, Prahalad CK (1994) Competing for the future. Harv Bus Rev 72(4):122–132

    Google Scholar 

  22. Hammer M (1990) Reengineering work: don’t automate, obliterate. Harv Bus Rev July–August:104–112

  23. Harrington SJ (1996) The effect of codes of ethics and personal denial of responsibility on computer abuse judgments and intentions. MIS Q 20(September):257–278

    Article  Google Scholar 

  24. Hart P, Saunders C (1997) Power and trust: critical factors in the adoption and use of electronic data interchange. Organ Sci 8(1):23–42

    Article  Google Scholar 

  25. Hedrick A (2001) Reports of EDI’s death were premature. AMR Research, Sunday, July 01 (available at www.amrresearch.com/Content/view.asp?pmillid=13446&docid=577)

  26. ISACA (1990) EDI control guide. Information Systems Audit Control Association, EDI Council of Australia, Sydney Chapter

  27. Jamieson R (1994) EDI: an audit approach. The EDP Auditors Foundation, Inc., Rolling Meadows, IL

  28. Jaworski BJ (1988) Toward a theory of marketing control: environmental context, control types, and consequences. J Mark 52(July):23–39

    Article  Google Scholar 

  29. Joreskog KG, Sörbom D (1989) LISREL 7: a guide to the program and applications, 2nd edn. SPSS Inc., Chicago, IL

  30. Joseph GW, Blanton JE (1992) Computer infectors: prevention, detection, and recovery. Inf Manag 23:205–216

    Article  Google Scholar 

  31. Kanakamedala K, King J, Ramsdell G (2003) The truth about XML. McKinsey Q 3:9–13

    Google Scholar 

  32. Kaefer F, Bendoly E (2004) Measuring the impact of organizational constraints on the success of business-to-business e-commerce efforts: a transactional focus. Inf Manag 41:529–541

    Article  Google Scholar 

  33. Kuan KKY, Chau PYK (2001) A perception-based model for EDI adoption in small businesses using a technology-organization-environment framework. Inf Manag 38:507–521

    Article  Google Scholar 

  34. Lawrence CM (1988) Usage of concurrent EDP audit tools. EDP Audit J 3(Fall):49–54

    Google Scholar 

  35. Lee S, Han I (2000) Fuzzy cognitive map for the design of EDI controls. Inf Manag 37:37–50

    Article  Google Scholar 

  36. Lee KC, Lee S (2007) Causal knowledge-based design of EDI controls: an explorative study. Comput Hum Behav 23(1):628–663

    Article  Google Scholar 

  37. Lee S, Ahn H (2009) Structural equation model for EDI controls: controls design perspective. Expert Syst Appl 36(2) (Part 1):1731–1749

    Google Scholar 

  38. Lee S, Han I, Kym H (1998) The impact of EDI controls on EDI implementation. Int J Electron Commerce 2(4):71–98

    Google Scholar 

  39. Liang H, Xue Y, Byrd TA, Rainer RK (2004) Electronic data interchange usage in China’s healthcare organizations: the case of Beijing’s hospitals. Int J Inf Manag 24:507–522

    Google Scholar 

  40. Marcella JA, Chan S (1993) EDI security, control, and audit. Artech House Inc., Norwood, MA

  41. McGowan MK, Madey GR (1998) The influence of organization structure and organizational learning factors on the extent of EDI implementation in U.S. firms. Inf Resour Manag J 11(3):17–27

    Google Scholar 

  42. Mehrtens J, Cragg PB, Mills AM (2001) A model of Internet adoption by SMEs. Inf Manag 39:65–176

    Article  Google Scholar 

  43. Mount I (2003) Why EDI won’t die. Business 2.0 Magazine, August 1 (available at www.business2.com/b2/subscribers/articles/0,17863,515887-1,00.html)

  44. Nakayama M (2003) An assessment of EDI use and other channel communications on trading behavior and trading partner knowledge. Inf Manag 40:563–580

    Article  Google Scholar 

  45. Ngai EWT, Wat FKT (2002) A literature review and classification of electronic commerce research. Inf Manag 39:415–429

    Article  Google Scholar 

  46. Nonaka I, Takeuchi H (1995) The knowledge-creating company: how Japanese companies create the dynamics of innovation. Oxford University Press, New York

    Google Scholar 

  47. Parker DB (1994) A guide to selecting and implementing security controls. Inf Syst Secur Summer:75–86

  48. Pearson FS, Weiner NA (1985) Criminology: toward an integration of criminological theories. J Crim Law Criminol 76(1):116–150

    Article  Google Scholar 

  49. Ramamurthy K, Premkumar G (1995) Determinants and outcomes of electronic data interchange diffusion. IEEE Trans Eng Manag 42(4):332–351

    Article  Google Scholar 

  50. Ring PS, Van de Ven AH (1994) Developmental processes of cooperative interorganizational relationships. Acad Manag Rev 19(1):90–118

    Article  Google Scholar 

  51. Rogers EM (1983) Diffusion of innovations. The Free Press, New York

    Google Scholar 

  52. Romm CT, Pliskin N, Rifkin WD (1996) Diffusion of E-mail: an organizational learning perspective. Inf Manag 31:37–46

    Article  Google Scholar 

  53. Ropponen J, Lyytinen K (1997) Can software risk management improve system development: an exploratory study. Eur J Inf Syst 6:41–50

    Article  Google Scholar 

  54. Sánchez AM, Pérez MP (2005) EDI and moderating effect of interorganizational cooperation in the supply chain. J Organ Comput Electron Commerce 15(2):83–104

    Article  Google Scholar 

  55. Senn AJ (1998) Expanding the reach of electronic commerce: the Internet EDI alternative. Inf Syst Manag Summer:7–15

  56. Sia SK, Neo BS (1997) Reengineering effectiveness and the redesign of organization control: a case study of the inland revenue authority of Singapore. J Manag Inf Syst 14(1):69–92

    Google Scholar 

  57. Smith AD (2005) Accountability in EDI systems to prevent employee fraud. Inf Syst Manag 22(2):30–38

    Article  Google Scholar 

  58. Soliman KS, Janz BD (2004) An exploratory study to identify the critical factors affecting the decision to establish Internet-based interorganizational information systems. Inf Manag 41:697–706

    Article  Google Scholar 

  59. Son JY, Narasimhan S, Riggins FJ (2005) Effects of relational factors and channel climate on EDI usage in the customer–supplier relationship. J Manag Inf Syst 22(1):321–353

    Google Scholar 

  60. Teo HH, Wei KK, Benbasat I (2003) Predicting intention to adopt interorganizational linkages: an institutional perspective. MIS Q 27(1):19–49

    Google Scholar 

  61. Ulfelder S (2004) B2B exchange survivors. Computerworld (available at www.computerworld.com/managementtopics/ebusiness/story/0,10801,89568,00.html), February 2, 12:00 PM ET

  62. Venkatraman N, Ramanujam V (1987) Planning system success: a conceptualization and an operational model. Manag Sci 33(6):687–705

    Article  Google Scholar 

  63. Weber R (1999) Information systems control and audit. Prentice Hall Inc, Upper Saddle River

    Google Scholar 

  64. Wiig KM (1997) Knowledge management, where did it come from and where will it go. Expert Syst Appl 13(1):1–14

    Article  Google Scholar 

  65. Witte CL, Grunhagen M, Clarke RL (2003) The Integration of EDI and the Internet. Inf Syst Manag 20(4):58–65

    Article  Google Scholar 

  66. Zviran M, Haga WJ (1999) Password security: an empirical study. J Manag Inf Syst 15(4):161–185

    Google Scholar 

Download references

Acknowledgment

This research was supported by WCU (World Class University) program through the National Research Foundation of Korea funded by the Ministry of Education, Science and Technology (Grant No. R31-2008-000-10062-0).

Author information

Authors and Affiliations

  1. College of Business Administration, Sejong University, Seoul, 143-747, Korea

    Sangjae Lee

  2. SKK Business School and Department of Interaction Science, Sungkyunkwan University, Seoul, 110-745, Korea

    Kun Chang Lee

Authors
  1. Sangjae Lee
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kun Chang Lee
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Kun Chang Lee.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Lee, S., Lee, K.C. The relationship among formal EDI controls, knowledge of EDI controls, and EDI performance. Inf Technol Manag 11, 43–59 (2010). https://doi.org/10.1007/s10799-010-0065-2

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10799-010-0065-2

Keywords

Search

Navigation