Moving toward LIS theory development: A framework of technology adoption within channels

Journal of Business Logistics, 1995 by Walton, Lisa Williams, Miller, Linda G

The increase in global competition has given managers the impetus to develop innovative relationships in the distribution channel. Managers are taking the integrated logistics concept of the 1970s and applying it to all firms within the supply chain. This strategic integration of trading partners is the Supply Chain Management concept (SCM). An important binding force that often holds these relationships together is information technology.(1) Thus, a good starting point in understanding formation of the Supply Chain Management concept and strategic alliances lies in understanding the interorganizational technology adoption decision.

This article proposes a framework and a model that jointly contribute to understanding information technology adoption and move toward the development of a Logistics Information System (LIS) theory. The framework, a comparative analysis of adoption models, is a road map that connects and focuses prior EDI research into a cohesive stream. It simultaneously guides the direction of future research by suggesting areas and methodologies for prospective research. The model attempts to explain interorganizational information technology adoption, and serves as a potential foundation for theory building in logistics information systems (LIS).

The purpose of this paper is to review prior research, suggest a model for future studies, and offer propositions to test in an effort to move toward theory development.

This article is organized into two parts. First, a framework describing the comparative analysis of adoption models is discussed. This framework is a road map that connects adoption models and provides focus for prior and future EDI research. It guides the direction of future research by suggesting methodologies not currently emphasized in channel technology adoption research. Second, a testable model for the adoption of information technology between channel partners is presented. It proposes guidelines to explain the adoption of information technology between channel partners. The proposed model is truly integrative; it crosses traditional organization functions and disciplines by including literature from logistics, marketing, management and organization, and economics. Together both the framework and model explain where EDI research has been and suggest an avenue of research to expand our understanding of EDI adoption and channel relationships.

FRAMEWORK OF COMPARATIVE ANALYSIS OF ADOPTION RESEARCH

Published works related to EDI, while informative and ground-breaking, collectively resemble a disconnected collage. This may be partly due to the absence of a framework that incorporates the research into a cohesive stream. Future research should follow the important inroads that prior research has provided. If this mapping is accomplished, then investigators would have a better understanding of how their work contributes to the overall body of research.

This understanding is necessary to move toward theory development. Researchers, through empirical investigation, gather many facts. As these facts accumulate, there is need for integration, organization, and classification in order to make isolated findings meaningful. Theory can be developed from interrelating these findings. After all, a theory is "a set of interrelated constructs, definitions, and propositions that presents a systematic view of the phenomena by specifying relations among variables, with the purpose of explaining and predicting the phenomena."(2) Therefore, this research moves towards theory-building by organizing and classifying prior EDI research, indicating areas needed for future research (to further understand the phenomena of EDI adoption within channels) and suggesting a model with propositions that may predict interorganizational EDI adoption.

EXPLANATION OF ADOPTION MODELS

The framework depicted in Figure 1 is designed to provide classification. (Figure 1 omitted) It is not designed to be an exhaustive display of adoption of EDI research, but instead provides a general framework for current and future research. This framework takes classic adoption models and applies them to the organization.

The objective of the EDI adoption process is to get the organization to behave or act in a manner conducive to adoption. According to classical models of adoption, the objective is reached after the adopting firm moves through three stages. In the cognitive stage the firm mentally considers or is exposed to the technology. After becoming aware of the technology's existence the firm moves into the affective stage. This stage is based on feelings toward the technology. If the firm has favorable feelings, it will then move into the behavioral stage and adopt the technology.

The classic AIDA(3) model supposes that the firm first becomes aware of the technology. This awareness leads to interest. The interest in the technology fuels a desire for the benefits the technology provides, which finally leads to action or adoption of the technology.