Keating, Byron W. and Coltman, Tim and Fosso-Wamba, Samuel and Baker, Valerie (2009): Unpacking the RFID investment decision. Published in: Proceedings of the IEEE , Vol. 98, No. 9 (2010): pp. 1672-1680.
Download (427kB) | Preview
Mandates aside, there are many reasons why firms decide to move forward with or delay investment in 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 non adopters 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 non adopters is an opportunity to derive strategic benefits from RFID through improved decision making. Not surprisingly, the non adopting firms are primarily concerned with the high acquisition and other ongoing costs associated with RFID technology.
|Item Type:||MPRA Paper|
|Original Title:||Unpacking the RFID investment decision|
|Keywords:||Radio frequency identification; RFID; technology adoption; information technology; innovation|
|Subjects:||C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C25 - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
|Depositing User:||Byron W. Keating|
|Date Deposited:||06. Aug 2012 13:32|
|Last Modified:||13. Feb 2013 02:56|
M. Porter, & V. Millar, How information gives you competitive advantage, Harvard Business Review (63:4) 1985, pp. 149-160.
A. Aizcorbe, C. Moylan, & C. Robbins, Toward better measurement of innovation and intangibles: survey of current business, Bureau of Economic Analysis (89:1) 2009, pp. 10-23.
K. Lyytinen, & G. Rose, The disruptive nature of information technology: the case of internet computing in systems development organizations, MIS Quarterly (27:4) 2003, pp. 557-586.
C. Christensen, Innovators dilemma, Harvard Business School Press, Boston MA, 1997.
P. Vail, & N. Agarwal, Disruptive innovation offers far-reaching solutions, IEEE Potentials (26:2) 2007, pp. 25-33.
B. Srivastava, Radio frequency ID technology: the next revolution in SCM, Business Horizons (47:6) 2004, pp. 60-68.
V. Venkatesh, M. Morris, G. Davis, & F. Davis, User acceptance of information technology: toward a unified view, MIS Quarterly (27:3) 2003, pp. 425-478.
E. Rogers, Diffusion of Innovation. Free Press, New York, 2003.
Y. Sheffi, RFID and the innovation cycle, International Journal of Logistics Management (15:1) 2004, pp. 1-10.
H. Boeck, & S. Fosso-Wamba, RFID and buyer-seller relationships in the retail supply chain, International Journal of Retail & Distribution Management (36:6) 2008, pp. 433-460.
G. Gaukler, & R. Seifert, Applications of RFID in supply chains. In Trends in Supply Chain Design and Management: Technologies and Methodologies, by H. Jung, F. Chen, B. Jeong, Springer Series in Advanced Manufacturing, Springer, 1st edition, 2007, pp. 29-48.
R. Kauffman, & A. Kumar, Network effects and embedded options: decision-making under uncertainty for network technology investments, Information Technology and Management (9:3), 2008, pp. 149-168.
C. Shapiro, & H. Varian, Information rules: a strategic guide to the network economy, Harvard Business School Press, 1999.
M. Tajima, Strategic value of RFID in supply chain management, Journal of Purchasing and Supply Management (13:4) 2007, pp. 261-273.
Z. Asif, & M. Mandviwalla, Integrating the supply chain with RFID: a technical and business analysis, Communications of the Association for Information Systems (15) 2005, pp. 393-427.
H. Heese, Inventory record inaccuracy, double marginalization, and RFID adoption, Production and Operations Management (16:5) 2007, pp. 542-553.
A. Cannon, P. Reyes, G. Frazier, & E. Prater, RFID in the contemporary supply chain: multiple perspectives on its benefits and risks, International Journal of Operations & Production Management (28:5) 2008, pp. 433-454.
D. Delen, B. Hardgrave, & R. Sharda, RFID for better supply chain management through enhanced information visibility, Production and Operations Management (16:5) 2007, pp. 613-624.
S. Fosso-Wamba, L. Lefebvre, Y. Bendavid & E. Lefebvre, Exploring the impact of RFID and the EPC network on mobile B2B ecommerce: a case study in the retail industry, International Journal of Production Economics (112:2) 2008, pp. 614-629.
N. Huber, K. Michael, & L. McCathie, Barriers to RFID adoption in the supply chain, IEEE RFID Eurasia, Istanbul, Turkey, 2007, pp. 1-6.
A. Smart, & R. Bunduchi, Identifying the costs of RFID implementation in supply chains, Working Paper, Supply Chain Management Research Group, Manchester Business School, 2007.
R. Fichman, Going beyong the dominant paradigm for information technology innovation research, Journal of the AIS (5:8) 2004, pp. 314-355.
P. Buckley, T. Devinney, & J. Louviere, Do managers behave the way theory suggests? Journal International Business Studies (38:7) 2007, pp. 1069-1095.
M. Gallivan, Organization adoption and assimilation of complex technological innovations: development and application of a new framework, Database for Advances in Information Systems (32:3) 2001, pp. 51-85.
L. Tornatzky, & K. Klein, Innovation characteristics and innovation adoption and implementation: a meta analysis of findings, IEEE Transactions on Engineering Management (29:11) 1982, pp. 28-45.
Z. Irani, J. Ezingeard, & R. Grieve, Costing the true costs of IT/IS investments in manufacturing: a focus during management decision making, Journal: Logistics Information Management (11:1) 1998, pp. 38-43.
H. Mintzberg, D. Raisinghani, & A. Theoret, The structure of unstructured decision processes, Administrative Science Quarterly (21) 1976, pp. 246-275.
B. Tyler, & K. Steensma, The effects of executives' experiences and perceptions on their assessment of potential technological alliances, Strategic Management Journal (19) 1998, pp. 939-965.
J. Dutton, & S. Jackson, Categorising strategic issues: links to organizational action, The Academy of Management Review (12:1) 1987, pp. 76-90.
E. Bottani, & A. Rizzi, Economical assessment of the impact of RFID technology and EPC system on the fast-moving consumer goods supply chain, International Journal of Production Economics (112:2) 2008, pp. 548-569.
C. Loebbecke, & C. Huyskens, Item-level RFID in the Japanese publishing industry: a case study, The Communications of the Association for Information Systems (23:18) 2008, pp. 319-332.
T. Coltman, R. Gadh, & K. Michael, RFID and Supply Chain Management: Introduction to the Special Issue, Journal of Theoretical and Applied Electronic Commerce Research, (3:1), 2008, pp. iii-vi.
R. Banker, J. Kalvenes, & R. Patterson, Information technology, contract completeness, and buyer-supplier relationships, Proceedings of the International Conference on Information Systems, Brisbane, Australia, 2000, pp. 218-228.
M. Whitaker, & A. Krishnan, A field study of RFID deployment and return expectations, Production and Operations Management (16:5) 2007, pp. 599-612.
M. Sigala, RFID applications for integrating and informationalizing the supply chain of foodservice operators, Journal of Foodservice Business Research (10:1) 2007, pp. 7- 29.
D. Hellström, The cost and process of implementing RFID technology to manage and control returnable transport items, International Journal of Logistics Research and Applications (12:1) 2009, pp.1-21.
A. Dutta, H. Lee, & S. Whang, RFID and operations management: technology, value and incentives., Production and Operations Management (16:5) 2007, pp. 646-655.
A. Marley, & J. Louviere, Some probabilistic models of best, worst, and best-worst choices, Journal of Mathematical Psychology (49:6) 2005, pp. 464-480.
J. Louviere, & T. Islam, A comparison of importance weights and willingness to pay measures derived from choice-based conjoint, constant sum scales and best-worst scaling, Journal of Business Research (61:9), pp. 903-911.
D. McFadden, The choice theory approach to market research, Marketing Science (5:4), pp. 275-297.
S. Chopra, & S. Manmohan, In search of RFID’s sweet spot, Wall Street Journal, March, 2007.
D. Street, & L. Burgess, Optimal and near-optimal pairs for the estimation of effects in 2-level choice experiments, Journal of Statistical Planning and Inference (118:1-2) 2004, pp. 185-199.
J. Swait, & J. Louviere, The role of the scale parameter in the estimation and comparison of multinomial logit models, Journal of Marketing Research, (30:3) 1993, pp. 305-314.
D. Hensher, J. Rose, & W. Greene, Applied choice analysis: A primer, Cambridge University Press, United Kingdom, 2005.
M. Tajima, Strategic value of RFID in supply chain management, Journal of Purchasing and Supply Management (13:4) 2007, pp.261-273.
T. Hill, Manufacturing strategy, Irwin, Homewood, Ill, 1989.
B. Keating, A. Quazi, & A. Kriz, Financial risk and its impact on new purchasing behavior in the online retail setting, Electronic Markets (19:4) 2009, pp. 237-250.
B. Keating, T. Coltman, K. Michael, & V. Baker, Unpacking the ERP investment decision: An empirical assessment of the benefits and risks, CD Proceedings of the European Conference on Information Systems (ECIS), Verona, Italy, 2009.
S. Armstrong, & T. Overton, Reducing non-response bias in mail surveys, Journal of Marketing Research (14:3), 396-402.