Enterprise’ E-invoicing Adoption in China

Abstract: This master thesis is an empirical investigation project that has been carried out in cooperation with Trustweaver AB. The purpose is to identify the key factors that influence the adoption of electronic invoicing in Chinese enterprises. A background study on global e-invoicing adoption and current e-invoicing development in China is conducted. A research model integrated by the diffusion of innovation theory, the technology, organization, and environment framework and Iacovou et al. (1995) model is postulated.The research model consists of three constructs which are technological context, organizational context and environmental and external context. Key factors that are analyzed in the research are perceived benefits and barriers, leader’s attitude, technology and financial readiness, top management support, partner and competitive pressure, government pressure, and regulatory concern. Based on the research model and the theoretical basis for each of the explanatory variables, nine hypotheses stating the relationships between the key factors and enterprises’ e-invoicing adoption intention are proposed.An online survey has been conducted and 72 responses have been collected from management of Chinese enterprises. Descriptive statistics and paired-samples T test are used to describe the values distribution and test the difference between the variables. Factor analysis and reliability test are performed to evaluate the validity of variables and assess the stability of constructs. Linear regression analysis is employed in order to examine six proposed hypotheses, i.e. the relationships between technological and organizational characteristics and enterprises’ adoption of e-invoicing.The results generally offer support for the research model and eight of the hypotheses hold while one rejects. Analysis has shown that perceived barriers, management attitude and support, technology and financial readiness are the determinant factors of e-invoicing adoption. Results also indicate that environmental and external factors strongly influence enterprises’ adoption decision, whereby government pressure and policy support have the most significant effect. The findings could be taken account to improve e-invoicing diffusion in China. Some strategies are developed in the study to promote enterprises’ adoption of e-invoicing.