Identifying the Drivers for Adoption of RFID Technology : A Study of Manufacturing Organizations

RFID Technology being a real time tracking system is the new era of automation. It has been used in several industries for different applications. However, the cost of implementing RFID system is too high, and achieving the ROI becomes difficult, because of the cost involved. Regardless of the cost, many organizations have adopted the technology and are fully conversant with it, while many are pilot testing the technology. Every organization has a different reason of adoption, as some use it because of the perceived benefits, while some go along with the industry standards. The purpose of this paper is to identify different drivers for adoption of RFID technology. Initially, through literature review, different variables were identified which affect the adoption of the technology, later organizations using the technology were surveyed, and the variables were reduced to factors by data reduction technique. It is found that the Organizational Drivers, Competitive Drivers, Technological Drivers and Environmental Drivers are the four important drivers that affect the manufacturing organizations decision to adopt the RFID technology