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Chapter 6.7
Recognizing RFID as a
Disruptive Technology
Chin-Boo Soon
The University of Auckland, New Zealand
Jairo A. Gutiérrez
The University of Auckland, New Zealand
ABSTRACT
Recognizing radio frequency identification
(RFID) as a disruptive technology unearths in-
teresting facts that could help managers decide
how to approach their RFID projects. RFID for
the supply chain (RFID/SC) has attracted global
attention and the adoption pace is quickening. It
has characteristics resembling that of a disruptive
technology. To better understand RFID/SC, we use
Christensen’s principles of disruptive technology
and the motivation/ability framework to illustrate
the uniqueness of RFID/SC. The principles pro-
vide valuable information for managers steering
their RFID projects toward success. We provide
cases studies as vignettes to support the applica-
tions of the theories. The objectives of this paper
are: (1) to equip managers with the knowledge of
disruptive technology in the context of RFID/SC,
(2) to highlight the need to assess an organiza-
tion’s motivation and ability for adopting RFID/
SC, and (3) to propose further research areas in
RFID/SC in the IS field.
INTRODUCTION
RFID for the supply chain (RFID/SC) has been
labeled a disruptive technology (Dietz, Lem-
ond, Moffatt, & Pak, 2006; Owen et al., 2005;
Raynor, 2008; Spekman & Sweeney-II, 2006).
The adoption path has been likened to that of
mini-computers in the late 1970s to the Internet
applications in the late 1990s (Raynor, 2008;
Walt, 2005). There are certain characteristics of
a disruptive technology that managers need to
know when they are adopting RFID technology.
Raynor (2008) suggests that “disruptive innova-
tions require a radically different approach to
business because they require organizations to