An Empirical Analysis of Electronic Data Interchange (EDI) Implementation Benefits in Kentucky Small- and Medium-Sized Enterprises: Some Implications for New IT Implementation

This paper reports that the benefits accrued from implementing and integrating Electronic Data Interchange (ED/) within small and medium-sized enterprises (SMEs) can be conceptuali=ed into two factors. First, firms derive operational/tactical benefits by predominantly focusing on increasmg internal utility of this technology. Second, firms derive strategic benefits from ED! in the form of beller external relationships and alliances with trading partners and an enhanced ability to compete in their market. Among other significant findings, there are clear indications from the correlation statistics reported here that experience with ED/, mdustrial category of a firm and the level of ED! integral ton have a stgnificant mjluence on the abtlity of a firm to obtam long-term (strategic) benefits from such IT projects. These results also have significant implications for SME managers/stakeholders considering new interorgani=ational IT initiatives.