RFID usage in European enterprises and its relation to competitiveness

Mirjana Pejić Bach,Jovana Zoroja,Michalis Loupis

doi:10.1177/1847979016685093

Abstract

The radio frequency identification (RFID) is one of the most promising new technologies of modern economy, with a high potential of improving the efficiency and productivity of enterprises. The main goal of this study is to determine the extent of RFID usage in European (EU) countries and to estimate whether there is a relation between countries’ competitiveness and their levels of RFID usage. First, the trend of RFID usage among EU enterprises is analyzed for the years 2009, 2011, and 2014. Second, a cluster analysis is applied with the goal to create homogenous groups of countries according to the RFID application across different industries. Third, countries from different clusters were compared according to their competitiveness in 2014. Results revealed that enterprises in Europe differ substantially according to their RFID usage. Also, RFID usage is not evenly distributed among countries across different industries, since some countries were leaders in RFID usage in one industry while lagging behind in RFID usage in other industries. Finally, countries from clusters with a higher RFID usage level also have a higher level of technological readiness and innovation, while smaller differences were found in business sophistication.

Highlights

Usage of the latest information and communication technologies (ICTs) provides many benefits for enterprises, for example, better access to information, lower costs, understanding customers’ needs, higher product/service quality, and competitive advantage.[1]
Countries from clusters with a higher Radio frequency identification (RFID) usage level have a higher level of technological readiness and innovation, while smaller differences were found in business sophistication
We have focused on RFID usage in the following seven industries: manufacturing, electricity, construction, trade, transportation, accommodation, and ICTs

Summary

Introduction

Usage of the latest information and communication technologies (ICTs) provides many benefits for enterprises, for example, better access to information, lower costs, understanding customers’ needs, higher product/service quality, and competitive advantage.[1]. RFID technology has been used since World War II,[3] but it has caught the attention of large global enterprises, for instance, Wal-Mart in the United States, in the last few decades. After other large global retailers, such as Tesco, Metro, and P&G, started to use RFID technology, its importance and benefits have been recognized worldwide.

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Conclusion