The Role of Technology Standardization in RFID Adoption

Abstract

In the United States (U.S.) retail industry, endorsement from an industry key figure spurred the adoption of radio frequency identification (RFID), but this did not turn out to be the case within the pharmaceutical industry. In order to provide insight into adoption drivers that are specific to the pharmaceutical industry, this research develops a theoretical model of RFID adoption factors, in which: (i) technology standardization is the main driver; (ii) three aspects of RFID technology that need to be standardized are specified; (iii) special attention is given to the adoption behavior of late adopters, rather than the existing early adopters; and (iv) a specific context for the pharmaceutical industry is provided by taking into account the key industry characteristics. The model provides practical insight for dealing with some of the adoption challenges faced by the U.S. pharmaceutical industry.