Key drivers of RFID adoption in Malaysian retail industry, a theoretical model

Abstract

Information is the key element of supply chain management. Radio Frequency Identification (RFID) technology has been used by organizations in the supply chain because of its unique capability of real-time access to information as well as identifying, tracking, and back tracing objects. However, it has yet to see high rates of adoption in Malaysia's retail supply chain. Thus, effort should be made to identify determinants affecting RFID adoption in the supply chain industry. The purpose of this study was to develop and to empirically test a theoretical model of RFID adoption in the context of retail chains in Malaysia; using the Technology- Organization-Environment (TOE) framework and diffusion of innovation (DOI) model. A questionnaire survey was conducted to study the adoption of RFID by 77 firms in Malaysia's retail chains. The survey data then was transferred into statistical software (SPSS 18.0) for further analysis. The findings indicate that the technology, organization and environment characteristics have significant influence on the adoption intention for RFID technology. The results of the study and related implications add to existing knowledge and ideas on the determinants of RFID adoption in the retail industry, with a specific focus on Malaysia.