Factors Affecting Willingness of Industries to Adopt Radio Frequency Identification (RFID)

Abstract

This research examined the willingness of businesses and industries to adopt RFID. It was postulated that motivation to adopt RFID is influenced by the technological context, organizational factors, and perceived benefits of using RFID. Data was collected from Council of Supply Chain Management Professionals members using a 19-question web-based survey. Relative advantage that firms can achieve and the perceived benefits in improving product quality and information sharing along with better traceability in the supply chain were significant predictors of RFID adoption. Within the technological contexts, the visible obstacles of RFID adoption through quality of transmission and reliability, understanding of overly high investment costs, and importance of the privacy concerns were all significant. The IT readiness of a firm was also a significant predictor of RFID adoption in the organizational factor, however the size of an organization was not at all linked to the RFID adoption decisions. The results point to a number of important conclusions that are informative for various business and industries that might be contemplating to adopt RFID technology in their operations.