An empirical investigation of the adoption and usage of electronic data interchange in the hotel industry

This dissertation examines the application of Electronic Data Interchange (EDI) adoption and use in the hotel industry. EDI is a type of interorganizational information system that facilitates the exchange of business documents in structured, machine processable form. The research model links EDI adoption to four usages: purchasing, accounting, financing and strategic. Based on relevant literature, six theories were selected from which, nineteen hypotheses were proposed for the relationships between EDI adoption and usage; The data were collected through a self-administered questionnaire that was mailed out to 1200 hotel manager with the title of purchasing managers, controllers, and management information systems managers. The managers had the option of mailing in the questionnaire or go to the following Web Site: http://www.unlv.edu/faculty/ramdeen/EDIsurvey.htm and fill out the questionnaire then submit. The usable responses were 287 (23.92 rate); The hypotheses were tested using multiple regression analysis. The analysis supports the following hypothesis: (1) EDI purchasing and financing usage is positively related to property size, (2) trading status is positively related to purchasing use, (3) business presence/feedback and quality is positively related to strategic use, (4) uncertainty is positively related to purchases and strategic use, (5) analyzability is positively related to strategic use, and (6) interdependence is positively related to purchase and strategic use; EDI is one of the many ways hotels may exchange information. This study shows that EDI can be use by hotels for purchasing, financing and strategic purposes. For hotels to improve their internal usages of EDI two conditions must be accomplish. First, hotels must improve the information flow between their trading partners. Second, the information flow must be sufficient to stimulate intraorganizational usages. It is anticipated that the role of EDI in hotels will continue to grow in the future. Presently, EDI in hotels are more confine to purchasing (purchase or purchase order processing), and strategic use (long-term procurement contracts and linkages to electronic funds). In the future, EDI could become an important tool for hotels to use in conducting business in both an interorganizational and intraorganizational way; Research on EDI is still in a growth stage. By identifying and testing relevant intraorganizational variables, this study offers insights to practitioners managing internal activities within hotels that are currently using or planning to use EDI. Further, the dissertation provides avenues for future research aimed at understanding the applications of EDI technology and its administrative capabilities that could benefit both practitioners and academics