Abstract

From two institutional perspectives, we discuss how an organization can initiate the diffusion of a radical IS innovation in its community by proactively exerting institutional influences. Through an in-depth historical analysis, we discuss how Wal-Mart initiated the RFID application in the retailing institutional field. From the institutional field angle, we discuss the structure, the scope, and the institutional carriers of the “RFID in retail” field in which Wal-Mart initiated the diffusion of RFID. From the institutional strategy angle, we profile Wal-Mart’s strategic concerns on RFID diffusion, its interests, and its resources. In the institutionalization processes of the RFID in retail field, we identified that an organizing vision was created, held, and evolved within the field, and played a critical role in Wal-Mart’s institutional strategy. By examining institutional perspectives of innovation fostering processes, this paper extends the literature on diffusion of radical IOS innovations in institutional fields.

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