Strategic and Institutional Perspectives in the Evaluation, Adoption and
Early Integration of Radio Frequency Identification (RFID): An Empirical
Investigation of Current and Potential Adopters
Aditya Sharma Dominic Thomas Benn Konsynski
North Carolina Emory University Emory University
Central University
asharma@nccu.edu dominic_thomas@bus.emory.edu benn_konsynski@bus.emory.edu
Abstract
This study is among the first few empirical field
studies that tests a proposed RFID adoption and
implementation model based on strategic choice and
institutional theories using survey data. We use a
multi-stage model approach as suggested by Cooper
and Zmud (1990) and test our proposed model by
studying factors that are critical in the evaluation,
adoption and integration stages of RFID. We test our
model by using data from both current and potential
evaluators, adopters and integrators of the technology.
We find interesting similarities and differences across
the three stages and also between the current and
future adoption and implementation scenarios. The
model has been tested by using multiple regression
and binomial logistic regression techniques. Key
insights have been presented and their implications
have been discussed.
1. Introduction
We present a study of organizational
implementation of radio frequency identification
(RFID) technology testing a multi-theory model with
what we believe is among the first few empirical, field
data to be published in academic literature. Even with
extensive writings on adoption and diffusion of
innovation [20] the adoption of new and emerging
technologies with unique characteristics, such as
RFID, is still not well understood. Adoption of special
technologies with adopter interdependencies [12]
technologies that impose heavy knowledge burdens on
adopters [4], and adoption of electronic data
interchange (EDI) technology [3] are all instances
where discussed diffusion theory generalizations could
not be directly applied and new models were
subsequently developed to understand and explain
adoption patterns.
In interorganizational systems (IOS) literature
various models have been developed to identify
adoption drivers. Most of the prior studies have used
diffusion of innovation theory [20]. To investigate
innovation attributes diffusion gets coupled with
organizational innovativeness literature [6,18,28],
which examines and explains characteristics of
organizations in their adoption and diffusion decisions.
The lens of institutional theory has also been used
to predict institutional pressures as drivers of IOS
based interorganizational linkages [23]. However, an
integrative adoption and diffusion model incorporating
drivers from multiple theoretical perspectives and
combining different adoption rationales with testable
predictive power is still needed. In addition, external
environment factors unexplored in this IOS technology
context may influence the adoption and diffusion of
new technologies because of their unique features and
characteristics.
This study addresses an existing literature gap by
building and testing an integrative model grounded in
the diffusion of adoption approach coupled [5] with
institutional theory to examine how companies are
implementing RFID technology. RFID provides an
interesting sandbox for the exploration of unknowns in
the adoption literature as it is an emerging technology
that may be simply used in house or, as practitioner
and vendor literature suggests for benefit
maximization, it can be the backbone for optimization
of whole supply chains. Thus, it is a technology that
possesses special features such as promoting inter-
organizational linkages similar to EDI and other
existing IOS, but at grander scales transcending the
tight linkages and processes as seen with EDI.
This paper begins with a literature review
developing the research model for predicting RFID
Proceedings of the 41st Hawaii International Conference on System Sciences - 2008
1530-1605/08 $25.00 © 2008 IEEE 1