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Article review-RFID technology adoption and supply chain performance: an empirical study in China's logistics industry

Introduction:

This paper puts light on the empirical research work conducted in Chinese logistics sector to find out the factors affecting the adoption of RFID technology and relation between RFID technology adoption and supply chain performance for logistics. This work is quite relevant to our course of study as this paper introduces us with the Chinese logistics systems and use of RIFD to make supply chain performance efficient.

Summary:

This paper with its theoretical base reveals that globalization has demand many national and international firms to incorporate supply chain strategy into their corporate strategy. Moreover, competitive advantage can be achieved with the adoption of innovative technologies such as Radio Frequency Identification (RFID).

The rapidly growing Chinese economy exerts pressure over its logistic and supply chain to be a global supply chain system. Some Chinese logistics firms have already started to invest in innovative technologies. However there are many factors influencing the adoption of such innovative technologies.

On the basis of theory, cost is one of the major factors that can affect the adoption of RFID; however, in general, technological, organizational and external environmental contexts affect the adoption and implementation of technology.

The research also reveals that there is huge market for RFID technology, because only a few have adopted it but many were interested in it. This adoption process can be enhanced with overcoming the influencing factors. In this case, the collaboration and cooperation between the logistics firms and RFID technology providers can improve the development and adoption process of RFID in Chinese logistics. The RFID providers can also improve the explicitness of the RFID in order to increase the willingness of the logistic firms for adoption process.

Since the adoption of RFID in the China’s logistics is in the infancy stage, the governmental support can further encourage this process. Moreover, this process involves replacing and redesigning the existing technology that is of substantial risks. In this regard government can start the process through pilot projects, tax rewards, and some financial incentives.

This paper does not study the effects of the adoption of RFID technology on performance of China’s logistics.  However, the findings of the research show a significant positive relation between the willingness to adopt RFID technology and supply chain performance. The logistics providers can thus improve their services to reinforce the competitive advantage by using such innovative solutions.

This study has some limitations such as it does not take the logistics service types into account. Their affect could be different on the adoption of RFID technology. Moreover, they could lead to different technological, organizational and environmental effects on the adoption process of RFID.

This study is also limited in its generalizability as it studies only the effects of technological, organizational and environmental factors on the adoption of RFID technology in China’s logistic sector. The logistics provider in other countries may have different views over the influencing factors of the adoption of RFID technology; hence a cross-border comparative study can be undertaken considering certain other factors.

Conclusion:

The research work with its practical implication reveals the insights of the factor influencing the adoption of RFID technology in China’s logistic systems.  In the present scenario of growing Chinese economy, the development and implementation of RIFD and such other innovative solutions would help logistic providers to gain competitive edge.

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