Track: Technology Management

Abstract

The main aim of this study is to determine the key RFID implementation factors influencing ‘in-house’ or outsourcing decision of RFID system implementation decision. Using structural equation modeling (SEM) on empirical data, we examine the effects of technological factors, operational factors and regulatory factors on RFID implementation decision. The SEM analysis result reveals that variables within the construct and the construct itself have different effect on RFID system implementation. This study finds that technological factors have high influence on ‘in-house’ RFID implementation decision, and regulatory factor have high influence on out-sourcing implementation decision whereas operational factor have high influence on both implementation decision. The finding of this study provides invaluable theoretical and managerial implications, and contribute to the decision making process of managers in RFID system implementation. The study can be further extended to find out the relative importance of constructs on implementation decision.