Studying RFID adoption by SMES in the Taiwanese IT industry

Abstract

With the advent of Radio Frequency Identification (RFID), organisations have the opportunity to rethink how their organisation will operate and integrate in the supply chain. Especially for Small to Medium Sized Enterprises (SMEs), that they have limited resources adopting such an innovative technology (i.e. RFID) can be daunting. Literature indicates that SMEs that deal with implementation have so far only a few guidelines regarding specific opportunities and risks. This research is therefore trying to fill the gap by employing Exploratory Factor Analysis (EFA) techniques and utilising a questionnaire survey with the aim of exploring the factors that affect SMEs’ RFID adoption in the Taiwan Information Technology (IT) manufacturing industry. In doing so, the adoption factors which are classified into 3 different adopters categories named ready adopter (cost and management), initiator adopter (competitiveness and process efficiency) and unprepared adopter (IT management difficulties, IT implementation difficulties and cost of implementation) using EFA technique. A SMEs RFID adoption model is then proposed. It is anticipated that the findings of this research will not only enhance the research in RFID adoption in SMEs, but can also act as a reference for practitioners in the industry and researchers in the academic field.