The causal relationships among EDI controls: a structural equation model

Advances in EDI (Electronic Data Interchange) demand appropriate controls in order to realize the potential benefits from it. Formal, informal, and automated controls are basic parts of EDI controls. The state of one of three controls is suggested to affect performance indirectly through their effect on another controls in the research model. The causal relationships are tested using structural equation modeling approach with LISREL. Informal controls turn out to play an important role in the causal relationships, as they significantly affect formal and automated controls to have indirect effect on performance. The results of the study indicate that the interrelationships among controls are closely related to system performance.