A Framework for Identifying the Critical Factors Affecting the Decision to Adopt and Use Inter-Organizational Information Systems

Abstract

The importance of inter-organizational system (IOS) has been increasingly recognized by organizations. However, IOS adoption has proved to be difficult and, at this stage, why this is so is not fully uncovered. In practice, benefits have often remained concentrated, primarily accruing to the dominant party, resulting in low rates of adoption and usage, and often culminating in the failure of the IOS. The main research question is why organizations initiate or join IOS and what factors influence their adoption and use levels. This paper reviews the literature on IOS adoption and proposes a theoretical framework in order to identify the critical factors to capture a complete picture of IOS adoption. With our proposed critical factors, we are able to investigate their relative contributions to IOS adoption decisions. We obtain findings that suggested that there are five groups of factors that significantly affect the adoption and use decision of IOS in the Supply Chain Management (SCM) context: 1) interorganizational context, 2) organizational context, 3) technological context, 4) perceived costs, and 5) perceived benefits.