Organisational factors in RFID adoption, implementation, and benefits

Abstract

This study investigates the impact of organisational and technological factors within pre-adoption, implementation, and post-implementation phases of RFID system deployment. In the pre-adoption phase, the study examines factors that drive and hinder organisations’ decision to adopt RFID. In the implementation phase, the study investigates the impact of organisational factors (business size, strength of culture, and business process re-engineering) on influencing the implementation processes of RFID. In the post-implementation phase, the study investigates how the benefits derived from RFID implementation interact with organisational factors (business size, strength of culture, and business process re-engineering) and RFID-related factors (product unit level of tagging, RFID implementation stage, and organisational pedigree in RFID). This study was motivated by the lack of (i) an advisory framework which considers quantifiable firm characteristics and the costs and benefits of implementing RFID, in yielding advice to guide decisions on RFID adoption, and (ii) a framework that covers the complete processes of RFID project deployment (from adoption decision to benefits derived) in yielding advice to guide decisions on RFID adoption.
This study is achieved using a two-phase research approach: questionnaire survey of organisations that have adopted or plan to adopt RFID and case studies of organisations that have integrated RFID into their business processes. In addition, a thorough review of existing literature on RFID in different industrial settings was conducted.
The key findings from the study indicate that RFID adoption is driven by factors from technological, organisational and environmental contexts and that the adoption, implementation and benefits of RFID are influenced by organisational culture strength, business size, and BPR. It was found that strong cultures, organisational size and BPR are all positively correlated with RFID adoption decisions, implementation and benefits. Potential contribution towards the existing body of knowledge is through highlighting the significance of organisational culture strength, business size, and BPR in providing a platform in which RFID will be accepted and implemented successfully to achieve maximum derivable benefits.