Environmental determinants of RFID adoption in retail supply chain, a binary logistic regression analysis

Abstract

Radio frequency identification (RFID) is an automatic identification and real-time data capture technology which allows for greater inventory visibility and better control of supply chain. Nevertheless, most of the RFID studies only discussed the applications or challenges of RFID technology; while rare attentions have been paid on empirically studying factors affecting the adoption of RFID in the retail chains. Drawing both on the diffusion of innovation (DOI) theory and RFID technology, this paper assesses the influence of a set of environmental determinants on the intention to adopt RFID technology. Retail chains in Malaysia were chosen for an empirical survey; 77 valid data sets were obtained and SPSS software was used to analyze the research model. Research findings reveal that social uncertainty and competitive pressure are significantly associated with the adoption of RFID. Empirical result could provide as reference for government, RFID's system developer and retail companies in n advancing the RFID adoption.