Radio frequency identification (RFID) and supply chain performance : a conceptual framework

This paper develops a conceptual framework to examine the factors impacting on the adoption of Radio Frequency Identification (RFID) and its impact on retail supply chain performance. RFID has been applied successfully in closed systems for some time. However, recent technology improvements and reduced costs have resulted in innovative open system RFID. The resulting opportunities are currently being assessed within the retail sector. As an emerging technology, RFID has the potential to substantially improve supply chain performance. However, a number of issues still remain unresolved limiting its mass implementation. Drawing on extant inter-organisational information system theory, we have identified factors likely to impact on the adoption of RFID. Two categories of factors such as technological and economic, form the basis of our conceptual framework. In order to assess the relationship between the level of RFID adoption and retail supply chain performance we introduced organisational factors as a third category of factors. Thus the organisational factor category acts as a moderator between adoption and performance. Unless all these relevant factors are fully understood, accounted for, or resolved, RFID will not lead to supply chain performance improvements.