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  1 The Impact of Public Policy on the Diffusion and Implementation of EDI

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Abstract:

Objective of this paper is to elaborate the impact of the administrative and regulatory framework and the measures within the TEDIS program (Trade Electronic Data Interchange Systems) on the diffusion of EDI. The diffusion of highly standardized EDI solutions, based on EDIFACT and OSI standards, faces two major obstacles: Firstly, companies hesitate to invest in the development of public goods, while other companies and the state can become free riders. Secondly, the economic rationale of EDI solutions is based on a critical mass of participants. Therefore, the role of the CEC to create incentives for companies to invest in an area where part of the results will be public goods (EDIFACT messages) and to collaborate and cooperate with other companies in setting-up EDI networks will be scrutinized. The impact of TEDIS activities on companies are evaluated on the background of the transaction cost theory: How do specific measures in particular and the policies in general affect the costs of companies to handle their business transactions and, more specific, the costs to set up and maintain EDI links with their business partners be it other enterprises or public administrations. It is shown how TEDIS affects transaction characteristics and transaction costs.

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