Journal of Electronic Commerce in Organizations, 1(2), 1-13, Apr-June 2003 1 Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. Linking Technological Compatibility and Operational Capacity Constraints to Communication Technology Adoption Elliot Bendoly, Emory University, USA Frederick Kaefer, Loyola University Chicago, USA ABSTRACT Two interacting issues have recently been shown to theoretically impact communication tech- nology adoption: the willingness of business partners to use various communication technolo- gies and a firm’s operational capacity to accommodate the product/service demands of these potential partners. This study examines the relationship between these two issues and Elec- tronic Data Interchange (EDI), a long standardized communication technology that has been underutilized by business organizations. Our findings suggest that the technological compat- ibility concerns of firms considering EDI adoption differ depending on if they are product or service oriented. Capacity limitations are found to significantly moderate these compatibility effects. The implications for managers of electronic commerce technologies are discussed. Keywords: E-commerce technologies and the workplace, inter-organizational systems, elec- tronic data interchange INTRODUCTION Developments in the Internet and new communication technologies for busi- ness transactions have been rapid, though widespread adoption has not. Vollmer (2001) writes that one of the most com- monly specified reasons for delaying the implementation of such e-business tech- nologies is the lack of standards typically associated with them. At the same time established standards for e-business have been in wide use for over 20 years–those associated with electronic data interchange (EDI). Yet, even though the use of EDI has been shown to have many benefits, only a relatively small percentage of firms have adopted the technology (Turban et al., 2002). This under-utilization of a very 701 E. Chocolate Avenue, Hershey PA 17033-1240, USA Tel: 717/533-8845; Fax 717/533-8661; URL-http://www.idea-group.com ITJ2425 IDEA GROUP PUBLISHING