The Influence of Societal Factors on the Diffusion of Electronic Data Interchange in the Netherlands

An information system does not exist in a vacuüm. It exists within an organizational and societal context which influences its design, use, management and ultimate acceptance. This paper reports on research into the influence of societal context on the acceptance and use of information systems. It is an examination of the influence of societal factors on the diffusion of electronic data interchange in the Netherlands. Semi-structured interviews with participants and observors of the diffusion process revealed the nature of this societal influence. Technology stimulation programs at the national and European Community levels combined with infrastructure developments have helped to shape the introduction and use of EDI in a fashion that is consistent with economie and cultural factors in the Netherlands. 3 INTRODUCTION During the 1970's and 1980's the importance of organizational context was recognized in the information systems field and became a legitimate topic of IS research. During the 1990's we can expect the societal context which incorporates political, cultural and economie factors to become an important aspect of IS research as well.. There are several reasons why this should be so. As the world comes closer together through transnational cooperation and political alliances, greater attention is being given to national characteristics which influence the successful development and use of information technology. At the national level, the societal rejection of certain technologies suggest that technical excellence alone will not result in the successful implementation of IT. Finally, the unfulfilled promises of technology and its negative consequences for privacy invasion and laborforce reduction suggest that the larger society beyond the doors of the organization needs to be taken into account in the study of information systems and technology. There are two aspects to the study of societal context as it relates to information systems. One is the impact of the technology on the society. The other is the influence of the society on the development and use of technology. The research reported in this paper focuses on the latter aspect. It is directed at examining the societal context within which information systems develop by examining aspects of the culture, 4 public policy, economy and societal infrastructures that exert an influence on the need for, types, and ways in which information systems are used in a given country. Specifically, this study is concerned with electronic data interchange (EDI) and the role that factors in the societal environment play in its diffusion. The context of this study is the Netherlands, a country which has made the diffusion of IT ira general, and EDI in particular a matter of national importance. Though the data from this study is specific to a particular information technology and a certain country, both the country and the technology can be viewed as examples of the issue of societal influence on technology diffusion. The analysis and conclusions are intended to add to our general knowledge about the way in which features of the societal environment help to shape the diffusion of any new information technology. In doing so it will contribute to the development of a research model identifying societal factors to consider when studying the introduction of IT.