EDI ADOPTION: CONTROLS IN A CHANGING ENVIRONMENT

This study investigates the critical factors that influence decisions regarding a change in management accounting controls after implementation of electronic data interchange (EDI). A field study of 235 small businesses was conducted, using hierarchical regression to test Ajzen’s (1991) theory of planned behavior. The results indicate that attitude and stakeholder perceptions influenced decisions, although management had no immediate plans to modify controls. Firm size and accounting system complexity also affected decisions. Surprisingly, limited financial and human resources were not influential.Small business executives may be unwilling to modify controls because they may not fully understand the risks when accounting systems and/or business practices are changed. This situation may have a serious impact on businesses and their trading partners. It is cause for concern because of the predicted growth of electronic commerce. By demonstrating the link between emerging control issues and system design, owners and managers may be more likely to respond to third party concerns.