Unpacking the RFID investment decision

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.

Abstract

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
• Language: English
• 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 ; Probabilities; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology

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