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Diffusion of RFID in Organizations: A Perspective Based on Risk Perception

Diffusion of RFID in Organizations: A Perspective Based on Risk Perception
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Author(s): Sanjay Goel (University at Albany, SUNY, USA) and Jakov Crnkovic (University at Albany, SUNY, USA)
Copyright: 2007
Pages: 3
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch332
ISBN13: 9781599049298
EISBN13: 9781466665378

Abstract

There are very well known advantages of implementing RFID technology in many industries. For example, if RFID tags are embedded within drugs it becomes very difficult for counterfeit drug makers who will have to replicate the RFID tag as well. However, there are several reasons for lack of adoption, including: rapidly changing technology, high costs, and poor reliability of tags. Even required mandates from partners and senior management may not be sufficient drivers to ensure penetration of RFID technology in other organizations. The “Diffusion of Innovation Theory” or DoI is used to explain the delay in the adoption of the technology in businesses. There has been significant work on computing the ROI for RFID based on technology risks and the cost of technology. The focus in this paper is on the significance of atypical risks in the adoption of RFID technology. This research is using the survey method to reject two suggested hypotheses. The innovative approach is in expanding the DoI in the organization into the process of planning the adoption of RFID technology and to continue using DoI during the implementation process.

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