Abstract: The importance of inter-organizational system (IOS)
has been increasingly recognized by organizations. However, IOS
adoption has proved to be difficult and, at this stage, why this is so is
not fully uncovered. In practice, benefits have often remained
concentrated, primarily accruing to the dominant party, resulting in
low rates of adoption and usage, and often culminating in the failure
of the IOS. The main research question is why organizations initiate
or join IOS and what factors influence their adoption and use levels.
This paper reviews the literature on IOS adoption and proposes a
theoretical framework in order to identify the critical factors to
capture a complete picture of IOS adoption. With our proposed
critical factors, we are able to investigate their relative contributions
to IOS adoption decisions. We obtain findings that suggested that
there are five groups of factors that significantly affect the adoption
and use decision of IOS in the Supply Chain Management (SCM)
context: 1) interorganizational context, 2) organizational context, 3)
technological context, 4) perceived costs, and 5) perceived benefits.