Adaptation of RFID technology in business supply chain success: Empirical findings from a developing country logistic industry

RFID has a significant impact on operational activities and is considered as an enabler for the development and support in becoming a lean organization in a highly dynamic business environment. The aim of this study is to examine the significant perceived factors, other than cost, which can enable a firm’s supply chain system to adopt RFID technology successfully. The study is quantitative in nature. Primary data of 350 managers were analyzed. Data was collected through a structured questionnaire. Factor analysis and multiple regression analysis were used to examine the hypotheses. Empirical findings overall supported the TOE framework and Diffusion of Innovation theory. Analysis of perceived factors suggested that technological, organizational and environmental factors may influence on adaptation of RFID in successful SCM systems. Moreover, in-depth analysis shows that explicitness of RFID technology, encouragement for innovation, and environmental uncertainly are significant and positive predictors of adaptation of RFID. This research contributes empirical findings to help managers of large scale firms to consider studied factors in adaptation of RFID technology in their firm. Since very few firms have implemented RFID in supply chain process. Hence this study provides them a holistic picture which helps them in formulating a concrete strategy.