The impact of RFID technology utilisation on supply chain productivity and organisational performance

The implementation of Radio Frequency Identification (RFID) technology is relatively expensive and the benefits in terms of improved financial performance, while promising, have yet to be objectively demonstrated. Using data collected from 129 manufacturing managers, we develop a scale to measure RFID utilisation and investigate the impact of the technology on supply chain productivity and organisational performance. The results indicate that RFID utilisation directly impacts supply chain productivity and indirectly impacts financial performance through supply chain productivity. The hypothesised direct impact of RFID utilisation on financial performance is not supported.