A Study on Green Characteristics of RFID using Innovation Diffusion Theory

Radio frequency identification (RFID) is one type of auto-identification technology that uses radio frequency (RF) waves to identify, track, and locate individual physical items. This technology has been used in many applications including manufacturing and distribution of product. While RFID is useful in improving several functions within a firm, the authors focus on the logistics function in this chapter. Applying RFID can help improve logistics in several ways. RFID can closely monitor and track positions of vehicles and assist companies to successfully manage their warehouses and supply chains. Additionally, cost savings, supply chain visibility, and new process creation have been identified as three key benefits of RFID adoption. In spite of significant number of research studies on RFID, there is a limited amount of published knowledge on the discussion of the drivers or influencing factors that lead logistics industry to consider RFID. Given the increasing importance of green issues, there is a need to understand how the perceived positive green characteristics are affecting the level of adoption of the RFID technology. The aim of this chapter is therefore to explore the factors affecting logistics service providers' intention to use RFID, with special emphasis on its environmental friendly green characteristics. The theory of diffusion of innovations is used to develop a conceptual model of factors influencing RFID adoption.