Impact of RFID on manufacturing effectiveness and efficiency

Purpose – The purpose of this paper is to examine the impact of radio frequency identification (RFID) technology utilization in manufacturing firms on manufacturing efficiency and effectiveness.Design/methodology/approach – Using systems theory as a basis, a RFID utilization and outcome(s) performance model was developed from the literature. Data from a sample of 155 manufacturers were collected and the model was assessed using a structural equation methodology.Findings – Findings indicate that utilization of RFID technology leads to improved manufacturing efficiency and manufacturing effectiveness. Improvements in efficiency lead directly to improved organizational performance, and improvements in effectiveness lead directly to improved supply chain performance.Research limitations/implications – Data were collected during the growth stage of RFID technology adoption and were only collected from firms in the manufacturing sector. Results should be interpreted with these limitations in mind.Practical impl...

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