ORGANISATIONAL FACTORS IN RFID ADOPTION, IMPLEMENTATION, AND BENEFITS by AL

334 Pages·2017·3.73 MB·English

by  Information Systems Service

ORGANISATIONAL FACTORS IN RFID ADOPTION,
IMPLEMENTATION, AND BENEFITS

by

AL- AMIN ABBA DABO

A thesis submitted in partial fulfilment for the requirements for the degree of
Doctor of Philosophy, Master of Philosophy at the University of Central
Lancashire

June 2017
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*registered candidate/*enrolled student for the following award:

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academic award and is solely my own work

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ABSTRACT
This study investigates the impact of organisational and technological factors within pre-
adoption, implementation, and post-implementation phases of RFID system deployment. In
the pre-adoption phase, the study examines factors that drive and hinder organisations’
decision to adopt RFID. In the implementation phase, the study investigates the impact of
organisational factors (business size, strength of culture, and business process re-engineering)
on influencing the implementation processes of RFID. In the post-implementation phase, the
study investigates how the benefits derived from RFID implementation interact with
organisational factors (business size, strength of culture, and business process re-engineering)
and RFID-related factors (product unit level of tagging, RFID implementation stage, and
organisational pedigree in RFID). This study was motivated by the lack of (i) an advisory
framework which considers quantifiable firm characteristics and the costs and benefits of
implementing RFID, in yielding advice to guide decisions on RFID adoption, and (ii) a
framework that covers the complete processes of RFID project deployment (from adoption
decision to benefits derived) in yielding advice to guide decisions on RFID adoption.
This study is achieved using a two-phase research approach: questionnaire survey of
organisations that have adopted or plan to adopt RFID and case studies of organisations that
have integrated RFID into their business processes. In addition, a thorough review of existing
literature on RFID in different industrial settings was conducted.
The key findings from the study indicate that RFID adoption is driven by factors from
technological, organisational and environmental contexts and that the adoption,
implementation and benefits of RFID are influenced by organisational culture strength,
business size, and BPR. It was found that strong cultures, organisational size and BPR are all
positively correlated with RFID adoption decisions, implementation and benefits. Potential
contribution towards the existing body of knowledge is through highlighting the significance
of organisational culture strength, business size, and BPR in providing a platform in which
RFID will be accepted and implemented successfully to achieve maximum derivable benefits.
I
ACKNOWLEDGEMENTS
First and foremost, all thanks and praise be unto God, for equipping me with the mental
strength and determination to push through this enjoyable, challenging, and educating PhD
journey.
I would like to express my deepest gratitude to:
The Petroleum Technology Development Fund (PTDF) for providing me with a scholarship and
an opportunity to achieve this milestone.
My supervisors, Dr Philip Kostov, Professor Ming Lim, Professor Ahmed Musa and Professor
Yahaya Yusuf, all of whom have unfailingly provided academic support and inspiration.
Mark Roberti, Founder and Editor of RFID Journal, and the management of organisations that
participated in this study. Their help was invaluable to the progress of my PhD.
Alhaji Balarabe Ahmed and Alhaji Aminu Galadima, both of whom have been instrumental to
the success of my PhD in more ways than can be mentioned.
Finally, I remain indebted to my friends and family for their moral encouragement,
particularly my lovely parents who have endlessly supported me and my brother Rufa’i, who
was always willing to offer a helping hand when called upon. May God bless them all!!

II
PUBLICATIONS
Journal Paper: Published

Musa, A. and Dabo, A. A. (2016). A Review of RFID in Supply Chain Management: 2000–
2015. Global Journal of Flexible Systems Management, 17(2), pp 189–228. DOI:
10.1007/s40171-016-0136-2
LIST OF TABLES
Table 2.1 RFID historical overview 9
Table 2.2 Some recent literature reviews of RFID in supply chain management 14
Table 2.3 Generic framework for the implementation of RFID systems 28
Table 2.4 Summary of benefits derivable from RFID implementation 32
Table 3.1 Publications from which determinants of RFID adoption were derived 45
Table 3.2 Organisational factors and their measures 53
Table 3.3 Publications from which RFID implementation processes were derived 60
Table 3.4 Publications from which RFID benefits were derived 63
Table 3.5 List of research hypotheses 64
Table 4.1 Key features of positivist and interpretivist philosophical paradigms 69
Table 5.1 Wave analyses to test external validity for non-response bias 102
Table 5.2 Reliability test results 103
Table 5.3 Descriptive and distribution statistics of the research variables 278
Table 5.4 Demographic data of respondents 104
Table 5.5 Cut-off values for fit indices 109
Table 5.6 Set of independent variables (research question 1) 111
Table 5.7 Variables in model A & B 113
Table 5.8 Regression weights and significance tests for individual parameters 117
Table 5.9 Hypotheses on impact of technological factors on decision to adopt RFID 120
Table 5.10 Hypotheses on impact of organisational factors on decision to adopt RFID 122
Table 5.11 Hypotheses on impact of environmental factors on decision to adopt RFID 123
Table 5.12 Set of independent variables (research question 2) 125
Table 5.13 Variables in model A (strength of culture) 126
Table 5.14 Variables in model B (business size) 127
Table 5.15 Variables in model C (BPR) 128
Table 5.16 Regression weights and significance tests for individual parameters 129
Table 5.17 Hypotheses on impact of strength of culture, size, BPR on decision to adopt 130
Table 5.18 Set of independent variables 132
Table 5.19 Impact of strength of culture on RFID implementation processes 133
Table 5.20 Impact of business size on RFID implementation processes 134
Table 5.21 Impact of BPR on RFID implementation processes benefits 134
Table 5.22 Decisions for hypotheses on impact of strength of culture, size, BPR on RFID 141
implementation processes
Table 5.23 Set of independent variables 142
Table 5.24 Impact of strength of culture on RFID benefits 144
Table 5.25 Impact of business size on RFID benefits 145
Table 5.26 Impact of BPR on RFID benefits 146
III
Table 5.27 Hypotheses on impact of strength of culture on RFID benefits 148
Table 5.28 Hypotheses on business size on RFID benefits 148
Table 5.29 Hypotheses on BPR on RFID benefits 149
Table 5.30 Descriptives for RFID implementation stage (one-way ANOVA) 292
Table 5.31 Multiple comparisons for RFID implementation stage (one-way ANOVA) 295
Table 5.32 Descriptives for PULT (one-way ANOVA) 298
Table 5.33 Multiple comparisons for PULT (one-way ANOVA) 302
Table 5.34 Descriptives for organisational pedigree in RFID (one-way ANOVA) 305
Table 5.35 Multiple comparisons for organisational pedigree in RFID (one-way ANOVA) 309
Table 5.36 Hypotheses on impact of RFID implementation stage on RFID benefits 153
Table 5.37 Hypotheses on impact of PULT on RFID benefits 154
Table 5.38 Hypotheses on impact of organisational pedigree on RFID benefits 154

LIST OF FIGURES
Figure 1.1 Research design 6
Figure 1.2 Organisation of the thesis 7
Figure 2.1 Total RFID market projections in US$ billions 12
Figure 2.2 The Diffusion of Innovation model 18
Figure 2.3 The Technology-Organisation-Environment framework 19
Figure 3.1 The research framework 43
Figure 4.1 Path model in SEM 89
Figure 5.1 Impact of strength of culture, size, BPR on decision to adopt RFID 286
Figure 5.2 Impact of strength of culture on RFID implementation processes 287
Figure 5.3 Impact of business size on RFID implementation processes 287
Figure 5.4 Impact of BPR on RFID implementation processes 288
Figure 5.5 Impact of strength of culture on RFID benefits 289
Figure 5.6 Impact of business size on RFID benefits 290
Figure 5.7 Impact of BPR on RFID benefits 291
Figure 6.1 Some applications of RFID in logistics industry 159
Figure 6.2 Uses of RFID in retailing processes 160
Figure 6.3 RFID application areas in manufacturing 161
Figure 6.4 RFID applications areas in healthcare 162
Figure 6.5 Business model of CSO-1 164
Figure 6.6 Improvements in CSO-1 store workflow attributed to RFID 166
Figure 6.7 Intermediate Bulk Container and RFID tags used to track it 172

IV
Table of Contents
ABSTRACT .............................................................................................................................................. I
ACKNOWLEDGEMENTS ...................................................................................................................... II

PUBLICATIONS ................................................................................................................................... III

LIST OF TABLES .................................................................................................................................. III

LIST OF FIGURES ................................................................................................................................. IV

CHAPTER 1 – INTRODUCTION ........................................................................................................... 1

1.1 Background ................................................................................................................................... 1
1.2 Research context ......................................................................................................................... 2
1.3 Research Aim and Objectives .................................................................................................. 4
1.4 Research Methodology .............................................................................................................. 5
1.5 Organisation of the thesis ......................................................................................................... 6

CHAPTER 2 – LITERATURE REVIEW .................................................................................................. 8

2.1 Introduction .................................................................................................................................. 8
2.2 RFID Technology .......................................................................................................................... 8

2.32.2.1 IndRuFsIDtr icaolm appopnliecnattsi oannds opfr oRcFeIsDse tse .c...h...n...o..l..o...g..y... .................................................................................................................................................. 1.. 39
2.42.2.2 TeRchFnIDo lmogaryk aedt odpevtieolonp mmoednet .l.s.. .......................................................................................................................................................................................................... 1151

2.4.1 Diffusion of Innovation (DOI) Theory ......................................................................................... 16
2.52 R.4F.2I D sTyescthenmo ldoegpyl–oOyrmgaennist a..t..i.o..n...–..E...n..v..i.r..o...n..m....e..n..t.. .(.T...O...E..).. .F..r..a..m....e..w...o...r.k... .................................................................................. 2118
2.4.3 Combination of DOI model and TOE framework ................................................................... 20

2.5.1 Pre-adoption phase ............................................................................................................................ 21
2.62.5.2 RImevpileewm eimntpatliiocna tpiohnasse .. .......................................................................................................................................................................................................................................... 3257
2.72.5.3 SuPmomsta-irmyp ...l.e..m....e..n..t..a..t.i..o..n.. .p...h..a..s..e.. .............................................................................................................................................................................................................. 3362

CHAPTER 3 – RESEARCH FRAMEWORK ......................................................................................... 38

3.1 Introduction ................................................................................................................................ 38
3.2 Developing the framework .................................................................................................... 39
3.3 The research problem ............................................................................................................. 41
3.4 Key variables/constructs ....................................................................................................... 42
①
②
3.4.1 Determinants offa RctFoIrDs a③doption .............................................................................................. 44
33..4.2 RRFFIIDD iamdpolpetmioenn tdaetciiosnio pnr oce ..s..s..e..s...④.................................................................................................... 52
3.4.3 Organisational⑤ ................................................................................................................. 52
4.4 -related factors ⑥ ................................................................................................ 59
3.4.5 RFID benefits ................................................................................................................................... 61
3.5 Research hypotheses ................................................................................................................ 64
3.63.4.6 SuRmFmIDary ............................. ............................................................................................................................................................................................................................... 6653

CHAPTER 4 – METHODOLOGY ........................................................................................................ 67

4.1 Introduction ................................................................................................................................ 67
4.2 Research Philosophy ................................................................................................................ 67

4.2.1 Positivism ............................................................................................................................................... 67
4.2.2 Interpretivism....................................................................................................................................... 68
4.2.3 Justification for choice of approach ............................................................................................ . 6V9
4.3 Research Strategy ...................................................................................................................... 70

4.3.1 Non-empirical approach .................................................................................................................. 70
4.44.3.2 ReEsemapricrhic aDle aspigpnro ..a..c..h.. ............................................................................................................................................................................................................................................. 7740
4.3.3 Justification for choice of research strategy ............................................................................. 74

4.4.1 Questionnaire design ......................................................................................................................... 75
4.4.2 Pilot testing of questionnaires ....................................................................................................... 76
4.54.4.3 DaStaam ....p..l.e... .s.e...l.e..c..t.i..o..n.. ........................................................................................................................................................................................................................................................ 8707
4.4.4 Questionnaire administration ........................................................................................................ 79

4.64.5.1 DaRtae sapnoanlsyes irsa toeu .t..l..i.n...e... ........................................................................................................................................................................................................................................... 8820
4.5.2 Data analysis ......................................................................................................................................... 81

4.6.1. Descriptive statistics.............................................................................................................................. 83
4.6.2 Chi-square test of goodness of fit ................................................................................................. 84
4.74.6.3 JBuisntairfiyc Laotigoinst ifco rR echgroeiscsei oonf .s...t.a...t..i.s..t..i..c..a...l. .t..e...c..h...n...i.q...u...e..s... .f.o...r.. .r..e...s..e...a..r...c..h... .q...u...e..s..t..i..o..n...s... ............................. 9866
4.84.6.4 SuSmtrmucatruyr .a...l. .E..q...u..a..t..i.o..n... .M...o..d...e..l.l.i..n..g.. .(..S..E..M....).. ......................................................................................................................................................................... 9878

CHAPTER 5 – SURVEY BY QUESTIONNAIRE .................................................................................. 98

5.1 Introduction ................................................................................................................................ 98
5.2 Questionnaire Design............................................................................................................... 98
5.3 Questionnaire administration and response rate ...................................................... 100
5.4 Statistical Results ................................................................................................................... 101

5.4.1 Non-response bias analysis........................................................................................................... 101
5.55.4.3 InfVearleidnittiya la nStda Rtiesltiiacbsi l.i..t.y.. .a..n...a..l.y..s..i.s.. .......................................................................................................................................................................................... 1 10062
5.4.4 Descriptive statistics of respondent firms .............................................................................. 103

5.65.5.1 RDeastae asrcrcehe qnuinegs tpiroinor 1 t:o D SrEiMve ersst aimndat cioonn astnrda tiensttsi nogf .R...F...I..D... .a...d...o...p..t..i..o..n... ........................................................ 1 11016
5.5.2 Data preparation for SEM analysis ............................................................................................ 107

5.6.1 Model definition ................................................................................................................................. 111
5.6.2 Results: Binary Logistic Regression .......................................................................................... 112
5.75.6.3 ReRseeasurclths: q Sutreuscttiuorna 2l E: Iqmuaptaiocnt oMfo sdtreellninggt h(S oEfM cu) .l.t..u...r..e...,. .b...u...s..i.n...e...s..s.. .s...i.z..e...,. .a...n...d... .B...P...R... .o...n. 1 16
de5ci.6si.4o n tDo iascduospstio RnF: IBDin ..a..r..y... L...o..g..i..s.t..i.c.. .r..e..g..r..e..s..s..i.o..n... .a..n..d... .S..E..M.... .r..e..s..u..l.t..s.. ............................................................................................. .1 12149

5.7.1 Model definition ................................................................................................................................. 124
5.7.1 Results: Binary Logistic Regression .......................................................................................... 125
5.85.7.2 ReRseeasurclths: q Sutreuscttiuorna 3l e: qImuaptaiocnt mofo sdterellninggt h(S oEfM c)u ..l.t..u...r..e...,. .s..i..z..e...,. .a..n...d... .B...P...R... ..o..n... .R...F...I..D... ....... 128
im5p.l7e.3m enDtiastciuosns iporno: cBeisnsa .r.y... l..o..g..i.s..t..i.c.. .r..e..g..r..e..s..s..i.o..n... .a..n..d... S...E..M.... .............................................................................................................................. 1 13320

5.8.1 Model definition ................................................................................................................................. 132
5.95.8.1 ReRseeasurclths: q Sutreuscttiuorna 4l E: Iqmuaptaiocnt oMf osdtreellninggt h(S oEfM cu) .l.t..u...r..e...,. .s..i..z..e...,. .B...P...R... .o...n... .b...e..n...e...f.i..t..s.. .d...e..r...i 1v3ed3
fro5m.8 .R2F IDD..i.s..c..u..s..s..i.o...n..:. .S..E...M... ..................................................................................................................................................................................................................................................... 1 14325

5.9.1 Model definition ..................................................................................................................................... 142
5.150.9.2 QRueseuslttiso: nS t5r:u Icmtupraalc Et qouf aRtFioIDn -Mreoldaetlelidn gfa (cStEoMrs) o...n... .b...e...n...e..f..i.t..s.. .d...e...r..i.v...e...d.. .f..r..o...m.... .R....F..I..D... ........... .1 15403
5.9.3 Discussion: SEM ...................................................................................................................................... 147

5.10.1 Results: One-Way ANOVA ................................................................................................................ 150
VI
CHAPTER 6 – CASE STUDIES ......................................................................................................... 156
5.10.2 Discussion: One-way ANOVA ......................................................................................................... 152
6.1 Introduction ............................................................................................................................. 156
6.2 Case study protocol ................................................................................................................ 156

6.36.2.1 BuSsainmepslse eannvdi ororgnamniesnatti aonnd s etlheec tiinodn u...s..t..r..i..a..l.. .c..o...n...t.e...x..t.. .o...f.. .t.h...e... .c..a...s..e... .s..t..u..d...i..e..s... .................................. 1 15587
6.2.2 Data Collection procedure and analysis in the case studies ............................................ 157

6.3.1 UK Logistics Industry ...................................................................................................................... 158
6.3.2 UK Retail Industry ............................................................................................................................. 159
6.46.3.3 CaUseK s Mtuadniuefsa c..t..u..r..i.n...g.. .I.n...d..u...s.t..r..y.. ......................................................................................................................................................................................................... 1 16630
6.3.4 UK Healthcare Industry .................................................................................................................. 161

6.4.1 Case study organisation 1 (CSO-1)............................................................................................. 163
6.4.2 Case study organisation 2 (CSO-2)............................................................................................. 167
6.56.4.3 IntCearsvei eswtu dDya otarg Caonlilseacttioionn 3 a (nCdS OA-n3a).l.y...s..i.s... ............................................................................................................................................................ 1 17760
6.4.4 Case study organisation 4 (CSO-4)............................................................................................. 174

6.66.5.1 IInntterordvuiecwtio Ann ..a...l.y...s..i.s.................................................................................................................................................................................................................................................. .1 17796
6.5.2 Reflective report on interview process......................................................................................... 177

6.6.1 Research question 1: Drivers and constraints of RFID adoption .................................. 179
6.6.2 Research question 2: Impact of strength of culture, size, and BPR on decision to
adopt RFID ........................................................................................................................................................... 189
6.6.3 Research question 3: Impact of strength of culture, size, and BPR on RFID
implementation processes ............................................................................................................................ 198
6.6.4 Research question 4: Impact of strength of culture, business size, and BPR on
benefits derived from RFID .......................................................................................................................... 207
6.6.5 Research question 5: Impact of RFID-related factors on benefits derived from RFID
CHAPTER 7 – SUMMARY AND IMPLICATIONS .......................................................................... 218
213
7.1 Introduction ............................................................................................................................. 218
7.2 Summary of findings ............................................................................................................. 218

7.2.1 Pre-adoption phase of RFID system deployment ................................................................ 219
7.37.2.2 IImmpplleicmaetinotnatsi oann dp hoarsieg ionfa Rl FcIoDn styrisbteumti odne pfrlooymm tehnits . ..s..t..u..d...y... .......................................................................................... .2 22282
7.47.2.3 RePcoosmt-mimepnldemateionntast ifoonr pphraasceti otifo RnFeIrDs saynsdte rme sdeeaprlcohymeresn ..t.. ......................................................................................... .2 23216
7.5 Limitations of this study ...................................................................................................... 233

REFERENCES .................................................................................................................................... 235

APPENDICES .................................................................................................................................... 274

Appendix A – Questionnaire (Survey instrument) ................................................................... 274
Appendix B – Descriptive and distribution statistics of the research variables ............ 283
Appendix C – Path diagrams of SEM ............................................................................................... 286
Appendix D – One-Way ANOVA results for research question 5 .......................................... 292
Appendix E – Case study interview questions ............................................................................ 315
APPENDIX F – Correlation Matrix ................................................................................................... 317

VII
CHAPTER 1 – INTRODUCTION
1.1 Background
Supply chain management (SCM) comprises a set of processes and enabling systems that
support business strategies and influence their operational, strategic and tactical decisions,
to achieve organisational competitiveness (Stadtler and Kilger, 2008). Organisations aim to
boost the competitiveness and efficiency of their supply chains by achieving closer integration
of all stakeholders and their functional units, thereby enhancing coordination of materials,
information, and financial flows within the network. However, globalisation and the dynamic
nature of today’s business environment often compels them into collaborating with multiple
supply chain stakeholders around the world, in a variety of cultures, and across numerous
organisational boundaries. Under such circumstances, the task of achieving effective and
efficient supply chain co-ordination and operation becomes daunting (Peña-Mora et al., 2014).
Consequently, organisations adopt various strategies to improve their agility and
responsiveness, improve the quality of their supply chain activities, and cut down operational
costs (Chen et al., 2012; Poon et al., 2009). These strategies may include the adoption of
technological innovation and/or the expansion of internal operation procedures into complex
supply chain networks.
The development, growth, and proliferation of information Technology (IT) has greatly
increased the opportunities for organisations to realize the task of integrating their supply
chains. Auto-identification (Auto-ID) technologies comprise a wide variety of information
collection tools and techniques capable of object and people identification, and information
retrieval, update, storage (Waldner, 2008). They allow organisations to continuously improve
their responsiveness and competitiveness by adapting their operations strategies, methods
and technologies to near real-time data at the enterprise edge.
Radio Frequency Identification (RFID) is an Auto-ID technology that uses radio waves to
capture data and provide real-time, contact-less communication with objects. RFID systems
are composed of a transponder (tag), an interrogator (reader), and a middleware system. The
transponder consists of a microchip and an antenna, and carries the unique identification
code of each object. The reader, made up of an antenna, emits radio signals to interrogate
1