Impact of RFID on the Retail Value Chain: An Exploratory Study Using a Mixed Method Approach
AbstractWhile several large retailers have mandated RFID deployment across their value chains, the case for RFID adoption in retail still remains uncertain. This paper aims at providing a realistic perspective of the immense potential of RFID, taking adoption drivers, potential benefits, and implementation challenges into account. In this paper, a mixed methodological approach is used that caters to the exploratory nature of the work to quantitatively analyze RFID adoption drivers, benefits, and implementation challenges. First content analysis is applied to analyze academic and trade articles to come up with key issues and concepts. The results from the content analysis acted as input for a Delphi study which is the second methodology. The combined results from the two methods provide deep insights and enhance understanding of important implementation issues related to RFID adoption in the retail sector and also aid in drawing meaningful managerial conclusions.
ALTSCHULD, J.W. (1993). Evaluation methods: Principles of needs assessment II, Delphi Technique Lecture. Department of Educational Services and Research, The Ohio State University.
ASIF, Z and Mandviwalla, M. (2005). Integrating the supply chain with RFID: A technical and business analysis. Communications of the Association for Information Systems, vol. 15, pp. 393-427.
BAGCHI, U., Guiffrida, A., O’Neill, L., Zeng, A., and Hayya, J.C. (2007). The effect of RFID on inventory management & control, pp. 71-92, in Jung, Hosang, F. Frank Chen, and Bongju Jeong (Eds.),Trends in Supply Chain Design and Management: Technologies and Methodologies. London: Springer-Verlag.
BHATTACHARYA, M.B., Chu, C.H., Mullen, T. (2007). RFID implementation in retail industry: Current status, issues, and challenges. Proceedings of 38th Annual Meeting of the Decision Sciences Institute, Phoenix, AZ, 2171-2176.
BHATTACHARYA, M., Chu, C.H., and Mullen, T. (2008). A comparative analysis of RFID adoption in retail and manufacturing sectors. Proceedings of IEEE International Conference on RFID, 16-17 April, Las Vegas, NV, pp. 241-249.
BHATTACHARYA, M., C.H. Chu, T. Mullen, and Hayya, J.C. (2009). An exploratory study of RFID implementation in retail sector. Proceedings of 40th Annual Meeting of the Decision Sciences Institute, New Orleans, LA, pp. 3011-3016.
BHATTACHARYA, M., Chu, C.H., Mullen, T., and Hayya, J.C. (2010a).An exploratory study of RFID adoption in the retail sector. Operations Management Research,Vol. 3, no. 1-2, pp. 80-89.
BHATTACHARYA, M., Petrick, I., Mullen, T. (2010b). A delphi study of RFID adoption for business process and value chain optimization. Proceedings of 41st Annual Meeting of Decision Sciences Institute, San Diego, CA, 3051-3056.
BHATTACHARYA, M., Petrick, I., Mullen, T., and Kvasny, L. (2011).A Delphi study of RFID applicable business processes and value chain activities in retail. Journal of Technology and Management Innovations,Vol. 6, no. 3, pp. 64-81.
BISKIN, B.H. (1980). Multivariate analysis in experimental counseling research. The Counseling Psychologist, vol. 8, pp. 69-72. [
BOSE, I. and Pal, R. (2005). Auto-ID: Managing anything, anywhere, anytime in the Supply Chain. Communications of the ACM, vol. 48, no. 8, pp. 100-106.
DALKEY, N.C. (1969). The delphi method: An experimental study of group opinion, Memorandum RM-5888 pr, Santa Monica, Rand Corporation.
DEDRICK, J., Gurbaxani, V., and Kraemer, K.L. (2003). Information technology and economic performance: A critical review of the empirical evidence. ACM Computing Surveys, vol. 35, no. 1, pp. 1-28.
GRUEN,T.W., Corsten, D.S., and Bharadwaj, S. (2002). Retail out-of-Stocks: A worldwide examination of extent, causes and consumer responses, Grocery Manufacturers of America.The Food Marketing Institute and CIES - The Food Business Forum.
HICKEY, K. (1999). A Diamond in the Rough. Traffic World, vol. 258, no. 5.
HOLSTI (1969). Content analysis for the social sciences and humanities. Reading, MA: Addison-Wesley.
JONES, P., Clarke-Hill, C., Shears, P., Comfort, D., and Hillier, D. (2004). Radio frequency identification in the UK: Opportunities and challenges. International Journal of Retail & Distribution Management, Bradford, vol. 32, no. 2/3, pp. 164-171.
KARKKAINEN, M. and Holmstrom, J. (2002).Wireless product identification: Enabler for handling efficiency, customization and information sharing. Supply Chain Management, An International Journal, vol. 7, no. 4, pp. 242-252.
KARKKAINEN, M. (2003). Increasing efficiency in the supply chain for short shelf life goods using RFID tagging. International Journal of Retail and Distribution Management, vol. 31, no. 10, pp. 529-536.
KRIPPENDORF, K. (2004). Content analysis:An introduction to its methodology.Thousand Oaks, CA: Sage.
LEEDY, P.D. and Ormrod, J.E. (2005). Practical research: Planning and design, 8th Edition. Pearson Merrill Prentice Hall.
LIN, D., Barton, R., Bi, H., and Freimer, M. (2007). Challenges in RFID enabled supply chain management. Quality Progress, vol. 39, no. 11, November, 23-28.
MARKLAND, R.E., Vickery,S.K., and Davis,R.A. (1995). Operations management. South Western College Publishing, Cincinnati.
METRAS, H. (2005). RFID tags for ambient intelligence: Present solutions and future Challenges. Proceedings of the 2005 Joint Conference on Smart Objects and Ambient Intelligence: Innovative Context-Aware Services: Usages and Technologies SOC-EUSAI '05, Grenoble, France, 121, pp. 43-46.
MOONEY, J.G., Gurbaxani, V., and Kraemer, K.L. (1996). A process oriented framework for assessing the business value of information technology. The Data Base for Advances in Information Systems, vol. 27, no. 2, pp. 68-81.
ORLIKOWSKI, W. (1993). CASE tools as organizational change: Investigating incremental and radical changes in systems development. MIS Quarterly, vol. 17, no. 3, pp. 309-340.
PREMKUMAR, G. and Roberts, M. (1999). Adoption of new information technologies in rural small businesses. International Journal of Management Science, vol. 27, pp. 467-484.
RAMAN, A. (2000). Retail-data quality: Evidence, causes, costs, and fixes. Technology in Society, vol. 22, no. 1, pp. 97-109.
RANGANATHAN, C. and Jha, S. (2005). Adoption of RFID technology: An exploratory examination from supplier’s perspective. Proceedings of the eleventh American conference on information systems, 11–14 August, Omaha, USA, pp. 2195-2199.
RANKY, P.G. (2006). An introduction to radio frequency identification (RFID) methods and solutions. Assembly Automation, vol. 6, no. 1, pp. 28–33.
ROBERTI, M. (2002). Wal-Mart, early adopter. Business, vol. 2.0., no. 3, pp. 5.
ROGERS, E.M. (1995). Diffusion of innovations (4th edition) (Ed.), New York:The Free Press.
SCHMIDT, C. (2001). Beyond the bar code. Technology Review, vol. 104, no. 2.
SHARMA, A. and Citurs, A. (2005). Radio frequency identification (RFID) adoption drivers: A radical innovation adoption perspective. Proceedings of the eleventh American conference on information systems, 11–14 August, Omaha, USA, pp. 1213-1218.
TAJIMA, M. (2007). Strategic value of RFID in supply chain management. Journal of Purchasing & Supply Management, vol. 13, pp. 261-273.
VIJAYARAMAN, B.S. and Osyk, B.A. (2006). An empirical study of RFID implementation in the warehousing industry. International Journal of Logistics Management, vol. 17, no. 1, pp. 6-20.
WAMBA, S.F., Lefebvre, L.A., Lefebvre, E. (2007). Integrating RFID technology and EPC network into B2B retail supply chain: A step toward intelligent business processes. Proceedings of the 8th International Conference on Electronic Commerce, Fredericton, New Brunswick, Canada, 281-288.
WANT, R. (2006). An introduction to RFID technology. IEEE Pervasive Computing, vol. 5, no. 1, pp. 25-33.
ZHOU,W. (2009). RFID and item-level information visibility. European Journal of Operational Research, vol. 198, no. 1, pp. 252–258.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).