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Electronic Data Interchange (EDI) is an inter‐organizational information system that requires collaboration and commitment between trading partners. The potential benefits that EDI can offer are substantial. However, the adoption and use of electronic linkages between companies is not as simple, or as profitable as had been expected. This study developed three conceptual models based on four important EDI measurements: EDI volume, diversity, depth, and breadth. Next, this research identified and discussed the evolutionary procedures of and the magnitude of EDI participation that companies tend to adopt in the context of the various environmental factors. Finally, this study produced a number of managerial implications and recommendations.

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