A contingency model for creating value from RFID supply chain network projects in logistics and manufacturing environments

Abstract

In the growing literature on RFID and other network technologies, the importance of organizational transformation at the supply chain level has been recognized. However, the literature lacks conceptual model development and salient mechanisms for achieving the level of organizational transformation required for stakeholders to realize the full business benefits from RFID projects. Furthermore, the RFID adoption, use, and impact studies to date largely focus on a single firm setting and on the retail sector. Therefore, this study intends to fill this knowledge gap in the literature, and develop a contingency model for creating value from RFID supply chain projects in logistics and manufacturing environments. For our model development, we draw upon extant diverse literatures; particularly the framework for IT-enabled business transformation (Venkatraman, 1994), and leadership and organizational learning. The framework postulates a positive relationship between the level of organizational transformation effected by the use of information technology (IT) and the level of business benefits realized from IT. The contingency model draws on the framework and explicates five contingency factors influencing value creation from RFID supply chain projects: environmental upheaval; leadership; second-order organizational learning; resources commitment; and organizational transformation. Using the contingency model as a conceptual guide, we also perform an analysis of longitudinal real-world case data from a Canadian third-party logistics service firm's seven-layer supply chain RFID projects. The case study analysis provides evidence for the imperative of the contingency factors identified in the model for creating value from the RFID projects. Furthermore, it also reveals the differential costs for the focal firm and the up-stream manufacturing as a key barrier to realizing the full RFID benefits at the supply chain level. A Contingency Model for Creating Value from RFID Supply Chain Projects in Logistics and Manufacturing Environments AbstractIn the growing literature on RFID and other network technologies, the importance of organizational transformation at the supply chain level has been recognized. However, the literature lacks conceptual model development and salient mechanisms for achieving the level of organizational transformation required for stakeholders to realize the full business benefits from RFID projects. Furthermore, the RFID adoption, use, and impact studies to date largely focus on a single firm setting and on the retail sector. Therefore, this study intends to fill this knowledge gap in the literature, and develop a contingency model for creating value from RFID supply chain projects in logistics and manufacturing environments. For our model development, we draw upon extant diverse literatures; particularly the framework for IT-enabled business transformation (Venkatraman, 1994), and leadership and organizational learning. The framework postulates a positive relationship between the level of organi...

Unveiling the Potential of RFID-Enabled Intelligent Patient Management: Results of a Delphi Study

“…In addition to investigating issues related to the integration of RFID-enabled patient management applications with existing intra-and interorganizational healthcare information systems, future research needs to be carried out on the level of business process change needed to achieve the high level of business value from RFID-enabled patient management applications, as well as to explore the best methodology to measure the business value of RFIDenabled patient management applications. Indeed, prior studies on interorganizational systems (IOS) such as electronic data interchange (EDI) adoption and use [41] and, more recently, RFID adoption and use [42] show a positive link between the level of business process transformation and the use of IOS and the level of business value realized from IOS [42]. Also, future research should look at the impact of factors such as RFID adoption incentives, RFID adoption mandate and organizational readiness on the level of business value realized from RFID-enabled healthcare applications.…”

“…For example, Riggins and Mukhopadhyay (1994) [41], in their study on EDI adoption in the electronic and automotive industries, concluded among others things that if "the incentives for a suppliers to make these changes to their internal systems and processes seem quite low, suppliers will be hesitant to invest in these changes, thereby limiting the benefit buyers may receive from these interorganizational systems", while "by mandating how their trading partners use the technology internally, these buyers stand to reap the full benefits of the technology while continuing to develop strong long-term relationships with those suppliers who are willing to proceed with the internal upgrading of their systems" (p. 53). More recently, Fosso Wamba and Chatfield (2009) [42], when exploring contingency factors influencing value creation from RFID technology in logistics and manufacturing environments, found that environmental upheaval, leadership, second-order organizational learning, resources commitment, and organizational transformation were the key five factors that may explicate the full business benefits realized from RFID technology (p. 615). Therefore, it will be interesting to explore to what extend the observations made by Riggins and Mukhopadhyay (1994) [41], and Fosso Wamba and Chatfield (2009) [42], are valid in the healthcare context.…”

Increasing competitiveness of third party logistics with RFID

“…Higher level benefits include enhanced inventory visibility and traceability at any stage in the supply chain, automated inventory counts, improved status monitoring, quality control, improved documentation, increased data accuracy and sharing, increased operational efficiency, reduced shrinkages, labour reduction and accurate asset tracking [22][23][24][25]. The high number of benefits encourages continued research in the area of RFID applications and future potential of the technology in particular the possible advancements to industry [26].…”

E-cooperation retail chain information system based on RFID

“…He thinks that companies should increase collaboration with their partners and learn about their partners' logistics to make better operational decisions. Wamba (2009) studies the conceptual model of RFID for achieving the level of organizational transformation required. He thinks that the retail sector is the key part to adopt the RFID.…”