Abstract

This study addresses a gap in IOS (interorganizational system) adoption literature by proposing an integrative model of RFID (radio frequency identification) adoption and early integration, that combines multiple theoretical perspectives suggesting different rationales for adoption. The study suggests possible roles for technological, interorganizational pressure, organizational readiness and external environmental factors in the adoption of RFID and proposes the perceived radicalness of technology as a moderator of relationships in the model. Using multiple lenses of strategic choice theories (diffusion of innovation, organizational innovativeness) and institutional theory as the basis and reflecting data from semi- tructured interviews and news reports, the study develops an integrative conceptual RFID adoption model and presents testable hypotheses at the construct and rationale levels. The model incorporates different rationales for adoption and integration of interorganizational systems(IOS) namely the strategic choice perspective where adoption is voluntary with a view to improve organizational efficiency and performance and the institutional perspective where adoption is more a result of conforming to pressures from organizations within an organization’s field of operation. Two technological factors (perceived benefit and perceived costs), three organizational readiness factors (top management support, financial readiness, IS infrastructure and capabilities) and three external environmental factors (perceived standards convergence, perceived consumer privacy and perceived stakeholder privacy) have been suggested as adoption and integration drivers from a strategic choice perspective while the three Inter-organizational pressure factors (coercive, mimetic and normative pressures) have been proposed as predictors of adoption intent and expected integration from the institutional perspective. The study allows for a comparison of the relative influence of each rationale on the adoption and post adoption integration decisions by a firm. Perceived radicalness of the technology has been operationalized as a continuous construct and suggested as a moderator of relationships between the drivers and adoption/integration of RFID. Analysis of data collected from the interviews and news reports lends support to the model and provides insight into relative importance of the constructs.

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