Towards a Better Understanding of Organizational Adoption and Diffusion of RFID Technology

Abstract

This paper aims to acquire underlying knowledge about the dynamics of RFID adoption and diffusion and explore the drivers that shape the RFID diffusion pathway. The paper uses a case study methodology to conduct and present the research and its findings. The paper presents an RFID adoption/diffusion model that can guide enterprises to transition from standalone RFID deployments towards new RFID systems that are deeply integrated with business processes. The diffusion process follows a three-stage model with isomorphic feedback mechanisms. The first stage is an isolated/sensing phase, the second stage is an absorptive phase, while the last stage is an integrative phase. The proposed model suggests that a combination of endogenous and exogenous factors constitute the driving forces behind each phase of the diffusion pathway. Our research reveals that some congruence between organizational and individual aims is plausible during the adoption phase and that RFID adoption can be initiated through organizational free-will as opposed to coercive pressures from influencing organizations.