Impact of RFID and information sharing on JIT, TQM and operational performance

Abstract

Purpose– This aim of this paper, from a systems perspective, is to focus on the effects of Radio Frequency Identification (RFID) technology adoption and information sharing within a manufacturing facility on the just-in-time (JIT) and total quality management (TQM) practices and the subsequent impact on operational performance of manufacturing firms.Design/methodology/approach– Data were collected from 104 manufacturing managers, supervisors and quality professionals and analyzed using a path analysis methodology.Findings– RFID technology utilization and supply chain information sharing combine to enhance a manufacturing organization’s JIT and TQM capabilities which lead to improve operational performance.Research limitations/implications– Although the sample size is large enough to support path analysis, it is not of sufficient size to support structural equation modeling. This limitation precludes assessing the model as a whole. Direct and indirect effects are assessed, however.Practical implications– Manufacturing managers are provided with a framework for assessing the synergistic impact of combining RFID technology and information sharing on the JIT and TQM capabilities and the subsequent impact on the operational performance of the firm.Originality/value– A systems approach to assessing the impact of a combination of RFID technology and information sharing on operations programs is developed and tested. The results verify the importance of implementing RFID technology within an information sharing environment and support the proposition that RFID technology enhances both JIT and TQM capabilities.