Int. J. Logistics Systems and Management, Vol. 7, No. 3, 2010 345 Copyright © 2010 Inderscience Enterprises Ltd. Determinants of RFID adoption among Logistics Service Providers in Malaysia: a discriminant analysis Suhaiza Zailani*, Yudi Fernando and Hasnida Zakaria School of Management, Universiti Sains Malaysia, 11800 Penang, Malaysia Fax: (604) 6577448 E-mail: shmz@usm.my E-mail: yudhitjoa@gmail.com E-mail: hasnida@gmail.com *Corresponding author Abstract: This paper studies the determinant factors that influence the adoption of Radio Frequency Identification (RFID) by Logistics Service Providers (LSPs) in Malaysia. The influencing factors include costs of the technology, perceived risks of technology, organisational readiness, the size of the organisation, customer and competitor pressures and government support. To provide insight into these factors, this study employed a questionnaire survey. The data are obtained from 68 logistics companies. The results provided evidence that the adoption of technological innovations is influenced significantly by technological, organisational and environmental characteristics and that adopting new technologies will increase supply chain performance for the logistics industry in Malaysia. Keywords: technology; RFID adoption; LSPs; logistics service providers; discriminant analysis; Malaysia. Reference to this paper should be made as follows: Zailani, S., Fernando, Y. and Zakaria, H. (2010) ‘Determinants of RFID adoption among Logistics Service Providers in Malaysia: a discriminant analysis’, Int. J. Logistics Systems and Management, Vol. 7, No. 3, pp.345–367. Biographical notes: Suhaiza Zailani is an Associate Professor in the Operations Section, Management School, USM. She has about 11 years of teaching and management consultancy experience in the areas of operations management. She has more than 150 Research Publications in International/National Seminars and Journals. Her areas of interest are supply chain, logistics, and transportation, which include her participation in a few important projects, which describe her capability. Yudi Fernando is currently pursuing his PhD at Universiti Sains Malaysia, Penang, Malaysia. He has a first degree in management. He earned an MBA from the School of Management at the same university. His research interest is on supply chain relationships and has participated in many international conferences.