The SME Way of Adopting RFID Technology: Empirical Findings from a German Cross-Sectoral Study

More than 98 per cent of all European companies are small or medium-sized enterprises (SMEs). Even though their structural characteristics are well known, neither academia nor politics have paid much attention to SMEs’ experiences in using RFID technology. Consequently, SMEs that deal with an implementation have so far only few guidelines regarding specific opportunities and risks. We try to fill that gap by presenting the findings of a survey among German enterprises which already use RFID. As far as we know, this work constitutes the first attempt to directly address SME specific aspects of RFID adoption based on empirical data from SMEs and large enterprises. We have evidence of the existence of an SME specific way: Across all sectors and different application areas, SMEs differ significantly from large enterprises in performance objectives and assessment of barriers. We can show that structural inertia theory supports our empirical findings, according to which RFID adoption favours SMEs. We conclude by deriving implications for SMEs not using RFID so far.

[1]  G. Hall,et al.  Determinants of the Capital Structures of European Smes , 2004 .

[2]  Rafael Accorsi,et al.  Personalization in privacy-aware highly dynamic systems , 2006, CACM.

[3]  Paul Milgrom,et al.  The economic nature of the firm: Bargaining costs, influence costs, and the organization of economic activity , 2009 .

[4]  Bill C. Hardgrave,et al.  Does RFID Reduce Out of Stocks ? A Preliminary Analysis , 2005 .

[5]  J. B. Quinn,et al.  Managing Innovation: Controlled Chaos , 1985 .

[6]  Sherah Kurnia The EPC Technology Implications on Cross-Docking Neda , 2005 .

[7]  Vijay Gurbaxani,et al.  A process oriented framework for assessing the business value of information technology , 1995, DATB.

[8]  M. Hannan,et al.  The Population Ecology of Organizations , 1977, American Journal of Sociology.

[9]  Gunnar Stefansson,et al.  ‘Smart Goods’ and Mobile RFID—A Case With Innovation From Volvo , 2006 .

[10]  Fusheng Wang,et al.  Temporal Management of RFID Data , 2005, VLDB.

[11]  F. Billari,et al.  does it matter? , 2007 .

[12]  Paul Milgrom,et al.  Bargaining and Influence Costs and the Organization of Economic Activity , 1987 .

[13]  P. Powell,et al.  SME Flexibility and the Role of Information Systems , 1998 .

[14]  M. Delmastro,et al.  The Determinants of Organizational Change and Structural Inertia: Technological and Organizational Factors , 2002 .

[15]  Frank Straube,et al.  Aktuelle Situation der RFID-Standardisierung , 2007 .

[16]  Ajit Kambil,et al.  Research Notes: Looking Back and Thinking Ahead: Effects of Prior Success on Managers' Interpretations of New Information Technologies , 1999 .