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RESEARCH PRODUCT

Hong Kong’s EDI bandwagon Derailed or on the right track?

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In this paper we explore the adoption of a complex networked technology — that of Electronic Data Interchange (EDI) — in the context of Hong Kong. EDI forms a complex and interorganizational innovation and therefore we suggest a multi-theoretical framework to examine its diffusion. The framework takes into account institutional, industry specific and organizational factors in the study of diffusion processes and thus extends the analysis beyond organizational borders. Using the framework we deliver an account of the EDI diffusion in Hong Kong based on field study data. The study clarifies how simultaneous organizational, industry and environmental factors can be brought to bear to understand the diffusion process. We distinguish six diffusion patterns and associated mechanisms that mold diffusion patterns in three diffusion arenas: local dyadic relationships, industry wide patterns, and community networks. The analysis demonstrates that EDI in Hong Kong is blooming on a grass root level and that earlier studies of EDI diffusion in Hong Kong, though in the right direction, are too simplistic and fail to account the diversity of the diffusion processes. On the theory plane our study calls for the need to orchestrate multi-theoretical approaches to study the diffusion of complex, and networked technologies.