Challenges of electronic data interchange adoption for electronic trading in the London Insurance Market

This paper describes an in-depth case study, carried out over the period 1993–1997, of the attempts made to introduce an EDI service, LIMNET EPS, to support the placement of risk in the London Insurance Market. The research approach adopts a process-based methodology and develops a theoretical basis on the cultural assumptions of technology which draws on technological frames and structural culture. The main body of the paper then describes and analyses the initiation, development and adoption challenges of the LIMNET EPS service. It is concluded that there are significant organizational and social issues which need to be addressed in the adoption of EPS across this market. Specifically, our analysis suggests that the low levels of EPS adoption are related to incongruences in the cultural assumptions held by key market participants in three domains: the nature of technological change, the nature of business transaction, and the importance of market institutions. Finally, we believe our theoretical basis may be valuable in research and practice to assist in the early identification of new evolving forms of electronic commerce.