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Unpacking the RFID investment decision

  • Keating, Byron W.
  • Coltman, Tim
  • Fosso-Wamba, Samuel
  • Baker, Valerie

Mandates aside, there are many reasons why firms decide to move forward with or delay investment in RFID technology. In this paper we use a theoretically based, easy to implement methodology to empirically derive a relative importance scale of those factors that influence the decision to invest in RFID technology. More specifically, we compare the factors that matter most and least to a sample of firms that have adopted RFID technology with a sample of firms that have yet to embrace RFID technology. The theoretical and practical implications are that both RFID adopters and non adopters are driven by the promise of greater data accuracy, improved information visibility, service quality, process innovation, and track and trace capabilities. What separates the adopters from the non adopters is an opportunity to derive strategic benefits from RFID through improved decision making. Not surprisingly, the non adopting firms are primarily concerned with the high acquisition and other ongoing costs associated with RFID technology.

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File URL: http://mpra.ub.uni-muenchen.de/40507/1/MPRA_paper_40507.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40507.

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Date of creation: 2009
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Publication status: Published in Proceedings of the IEEE 9.98(2010): pp. 1672-1680
Handle: RePEc:pra:mprapa:40507
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  1. Srivastava, Bharatendu, 2004. "Radio frequency ID technology: The next revolution in SCM," Business Horizons, Elsevier, vol. 47(6), pages 60-68.
  2. Fosso Wamba, Samuel & Lefebvre, Louis A. & Bendavid, Ygal & Lefebvre, √Člisabeth, 2008. "Exploring the impact of RFID technology and the EPC network on mobile B2B eCommerce: A case study in the retail industry," International Journal of Production Economics, Elsevier, vol. 112(2), pages 614-629, April.
  3. Bottani, Eleonora & Rizzi, Antonio, 2008. "Economical assessment of the impact of RFID technology and EPC system on the fast-moving consumer goods supply chain," International Journal of Production Economics, Elsevier, vol. 112(2), pages 548-569, April.
  4. Peter J Buckley & Timothy M Devinney & Jordan J Louviere, 2007. "Do managers behave the way theory suggests? A choice-theoretic examination of foreign direct investment location decision-making," Journal of International Business Studies, Palgrave Macmillan, vol. 38(7), pages 1069-1094, December.
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