The impact of EDI on interorganizational integration

This paper considers the interorganizational effects of Electronic data interchange (EDI) from a transaction cost perspective. In particular, it uses empirical methods to identify those factors which distinguish open and closed EDI systems. The results obtained show that open EDI furthers market coordination by reducing asset specificity and by making additional partners available, but that the degree of interorganizational integration and mutual dependence is not reduced by the use of open EDI systems alone.