Innovation Diffusion Theory as a Predictor of Adoption Intention for Financial EDI

This study assesses the ability of innovation diffusion theory to predict the adoption intention of organizations for financial EDI. Six factors potentially affecting adoption intention were studied: relative advantage, compatibility, complexity, observability, trialability, and risk (operational and strategic). Both present and future adoption intentions were measured, The questionnaire was developed using a process of conceptual construct validation. It was administered to three key employees of all participating organizations through a survey. Responses were subjected to a process of empirical construct validation. Results show that present adoption intention is dependent on complexity, operational risk, and strategic risk to a greater extent, and relative advantage and observability to a lesser extent. Future adoption intention is contingent upon complexity, observability, and strategic risk to a greater extent, and trialability to a lesser extent. These findings permit financial EDI operators to shape their marketing strategies to encourage adoption.