Linking Technological Compatibility and Operational Capacity Constraints to Communication Technology Adoption

Abstract

Two interacting issues have recently been shown to theoretically impact communication technology adoption: the willingness of business partners to use various communication technologies and a firm’s operational capacity to accommodate the product/service demands of these potential partners. This study examines the relationship between these two issues and Electronic Data Interchange (EDI), a long standardized communication technology that has been underutilized by business organizations. Our findings suggest that the technological compatibility concerns of firms considering EDI adoption differ depending on if they are product or service oriented. Capacity limitations are found to significantly moderate these compatibility effects. The implications for managers of electronic commerce technologies are discussed.