Document Type

Article

Abstract

Most research problems on Radio frequency identification (RFID) focus on effects of RFID implementation on firms, factors affecting RFID adoption, and impact evaluation of RFID implementation. And literature about RFID adoption concentrates on short-term effects or impact evaluation. However, short-term analysis will not identify the impact of RFID adoption adequately. We use monthly data of 86 companies which adopted RFID projects around the world at some point from January 1997 to December 2011 and perform four years calendar portfolio analysis (CPA) and Tobin's Q comparison analysis to gain comprehensive insights into the mechanism of RFID on firm performance. Further, we investigate five contextual factors that moderate the impact of RFID adoption including adoption time, country, industry, and financial health condition of adoption firms. We find that RFID may not demonstrate its value instantly, but it has indeed enhanced firms’ future growth potential in the long run.

Share

COinS