Factors Influencing Electronic Data Interchange Adoption among Small and Medium Enterprises in Saudi Arabia

Abstract

Manuscript type: Research paper.
Research aims: This paper aims to investigate what factors influence
the intention of small and medium enterprises (SMEs) in Saudi
Arabia to adopt the electronic data interchange (EDI).
Design/ Methodology/ Approach: A survey involving 269 SMEs in
Saudi Arabia was conducted and data were analysed using multiple
regression.
Research findings: Results demonstrate that perceived EDI benefits,
organisational readiness, government support and pressure from
business partners are significant determinants of the SMEs’ intention
to adopt the EDI in Saudi Arabia.
Theoretical contribution/ Originality: This study enriches the
understanding on the issue of EDI adoption in an Arab country; it
specifically fills the lack of academic research that concerns SMEs in
Saudi Arabia.
Practitioner/ Policy implications: The insights gained from this
study can facilitate industry practitioners to develop comprehensive
business strategies and effective institutional policies to facilitate EDI
implementation in Saudi Arabia.
Research limitation/ Implications: The findings of this study may, to
some degree, be confounded by external validity since the sampling
frame is restricted to SMEs located in Saudi Arabia only. Due to the size of the sample in the study, there is an imperative need for
further research to be conducted with a larger sample size.
Keywords: Adoption, Electronic Data Interchange (EDI), Innovation,
SMEs
JEL Classification: M15, M19