RFID technology adoption and supply chain performance: an empirical study in China's logistics industry

Abstract

PurposeThe purpose of this paper is to study the factors influencing the adoption of RFID technology and the relation between RFID technology adoption and supply chain performance for logistics companies.Design/methodology/approachDeterminants of RFID technology adoption are analyzed from the technological, organizational and environmental perspectives. Supply chain performance measurements consist of financial and non‐financial indices. Data were collected by means of delivering questionnaires to logistics service providers in China. A total of 574 logistics companies were analyzed.FindingsLogistics companies' willingness to adopt RFID technology are significantly influenced by the explicitness and accumulation of technology, organizational encouragement for innovation, quality of human resources, and governmental support. There is a positive association between the willingness to adopt RFID technology and supply chain performance for logistics service providers.Research limitations/implicationsAs a single‐country and single‐industry study, the current research may be limited in its generalizability.Practical implicationsThe growth of China's economy hinges to a large extent on the ability of the logistics industry to operate efficiently and effectively in the global supply chain system. China's logistics service providers need to adopt more efficient logistics technologies to provide better supply chain services for their customers. This paper provides some suggestions for governmental officials, logistics companies, and RFID technology providers in advancing the application of RFID in supply chains.Originality/valueThis paper may be the first empirical research in analyzing the adoption of RFID technology and its association with supply chain performance in the logistics industry, especially for China's logistics industry.