Understanding the determinants of electronic supply chain management system adoption: Using the technology-organization-environment framework

Abstract

Based on the technological innovation literature and technology-organization-environment framework, this study develops a research model to investigate the determinants of electronic supply chain management system (e-SCM) adoption across non-adopters and adopters. The research model examines the influence of technological context (perceived benefits and perceived costs), organizational context (firm size, top management support, and absorptive capacity), and environmental context (trading partners and competitive advantage) on e-SCM adoption. Data gathered from 283 IS managers (127 for non-adopters and 156 for adopters) in large Taiwanese firms were employed to test the relationships between the research model constructs using the logistic regression analysis. The results reveal that firms with certain perceived benefits, perceived costs, top management support, absorptive capacity, and competitive pressure are more likely to adopt e-SCM. While technological context is a major determinant of the decision to adopt, it has no direct effect on the extent of e-SCM adoption. The extent of e-SCM adoption is mainly determined by organizational and environmental contexts. Implications for practice and research are discussed.