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Adoption and Diffusion of RFID Technology in the Automotive Industry

Patrick Schmitt, Frederic Thiesse & Elgar Fleisch

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abstract The adoption of newer information technologies like Radio Frequency Identification (RFID) can improve the transparency and therefore the speed and accuracy of information exchange within supply chains. An increase of process efficiency is one of the advantages of RFID. But after many years of hyping the RFID technology it becomes increasingly evident that the actual adoption and diffusion of RFID lags behind the expectations of its optimistic promoters. In our paper we identify factors which are fostering the adoption and diffusion of RFID in a particular industry such as automotive. With a look at the theory of innovation diffusion, reviews of IS and IT diffusion studies, case reports and our practical experience in the automotive industry we extract factors in three categories: (a) innovation characteristic, (b) organizational characteristics and (c) environmental characteristics. The resulting most important factors compatibility, complexity, costs and performance belong to group (a) while the factor top management support belongs to group (b). With the knowledge of these factors, potential users are able to evaluate if it is reasonable to adopt RFID at a certain point of time and furthermore become able to actively influence these factors to increase the rate of diffusion of RFID.
   
type conference paper (English)
   
keywords RFID, Automotive Industry, Adoption, Innovation Diffusion, Standards
   
project M-Lab
name of conference E-DIGIT Workshop, European Conference on Information Systems (St. Gallen)
date of conference 6-6-2007
review double-blind review
   
citation Schmitt, P., Thiesse, F., & Fleisch, E. (2007). Adoption and Diffusion of RFID Technology in the Automotive Industry. In .