Unpacking the RFID Investment Decision

Mandates aside, there are many reasons why firms decide to move forward with or delay investment in radio-frequency identification (RFID) technology. In this paper, we use a theoretically-based, easy to implement methodology to empirically derive a relative importance scale of those factors that inf...

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Bibliographic Details
Published in:Proceedings of the IEEE 2010-09, Vol.98 (9), p.1672-1680
Main Authors: Keating, Byron W., Coltman, Tim R., Fosso-Wamba, Samuel, Baker, Valerie
Format: Article
Language:English
Subjects:
Acquisitions
Australia
Automatic identification
Costs
Decision making
Delay
Empirical analysis
Financing
Information technology
innovation
Internet
Investment
Investments
Marketing
Radio frequency
Radio frequency identification
radio-frequency identification (RFID)
Radiofrequency identification
Studies
Technological innovation
technology adoption
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Summary:Mandates aside, there are many reasons why firms decide to move forward with or delay investment in radio-frequency identification (RFID) technology. In this paper, we use a theoretically-based, easy to implement methodology to empirically derive a relative importance scale of those factors that influence the decision to invest in RFID technology. More specifically, we compare the factors that matter most and least to a sample of firms that have adopted RFID technology with a sample of firms that have yet to embrace RFID technology. The theoretical and practical implications are that both RFID adopters and nonadopters are driven by the promise of greater data accuracy, improved information visibility, service quality, process innovation, and track-and-trace capabilities. What separates the adopters from the nonadopters is an opportunity to derive strategic benefits from RFID through improved decision making. Not surprisingly, the nonadopting firms are primarily concerned with the high acquisition and other ongoing costs associated with RFID technology.
ISSN:0018-9219
1558-2256
DOI:10.1109/JPROC.2010.2052530