S-Space College of Business Administration/Business School (경영대학/대학원) Dept. of Business Administration (경영학과) Theses (Ph.D. / Sc.D._경영학과)
The Effect of RFID Technology, Capabilities and Policy Trust on the Business Process Performance: Comparison of Adoption and Adaptation Stage
RFID 技術, 力量, 政策的 信賴가 비즈니스 프로세스 成果에 미치는 影響: 導入 및 活用時期를 批敎하여
- 경영대학 경영학과
- Issue Date
- 서울대학교 대학원
- RFID Technology; Capabilities; Policy Trust; Business Process; Business Process Performance
- 학위논문 (박사)-- 서울대학교 대학원 : 경영학과 경영학 전공, 2013. 2. 안중호.
- Radio frequency identification (RFID), a leading technology in this age of ubiquity, has innovated business processes in many fields such as in logistics, distribution, manufacturing, and retail. RFID is a tool for gaining sustainable competitive advantage, namely, information technology (IT) value. As RFID is in accordance with the existing information systems and infrastructure within a firm, companies need to have the competence to successfully execute this technology. However, the information society is rapidly changing, and many consequent problems, such as the adverse effects of technology use, privacy leaks, and information security issues, are arising, making the adoption of new enterprise IT (EIT), such as RFID, all the more difficult. Only with the proper regulatory support from the government can a firm enhance creativity.
Considerable research on RFID is focused on the introduction of RFID technology, the construction of an RFID system, and the implementation of such a system. However, for successful implementation, IT competence and performance-oriented strategies need to be examined. Most research has explored internal factors (e.g., top management support and organizational maturity), and only a few studies have empirically analyzed external factors (e.g., policy trust). Thus, the effect of RFID resource and policy trust on business process performance should be noted as well as the change in the perception of users before and after RFID adoption.
To analyze the relationships among the given factors, the IT business value model (Melville et al., 2004) is used in this paper. According to the literature on RFID adoption, the environmental factors for business process performance are (1) RFID technology, (2) RFID capabilities, and (3) policy trust, which have an indirect, instead of direct, influence on the performance through the business process. IT business value or performance is created from a combination of a variety of resources.
Using RFID as an EIT, this study extends the concepts of Piccoli and Ives (2005) and employs measures whose reliability and validity were validated by previous studies. The constructs used in this study refer to those in the logistics industry. The items introduced in previous research were modified for RFID. The reliability and validity of the measurement tool are in accordance with the validating framework of Straub (1989).
To empirically analyze this research model, a survey of the executives (i.e., those above the managerial level) of enterprises using RFID and planning to introduce it was conducted through email and personal interviews from August 22 to September 7, 2012. Questionnaires were handed out to 420 executives in Air Force logistics who have used RFID in logistics affairs for many years because these executives were the subjects of the RFID pilot project in 2004. The questionnaires were distributed to 700 subjects, including 250 RFID license holders and 30 middle managers in RFID enterprises registered in the Korea Association of RFID/USN Convergence (KARUS). A total of 187 questionnaires (response rate: 26.7%) were used for the analysis, excluding 26 inconsistent or unreliable sets of answers.
The collected data were analyzed through PASW Statistics 18.0 and SmartPLS2.0 M3. To examine the general properties of the respondents, frequency analysis using frequency and percentage was performed, and partial least squares (PLS) regression was employed for structural model analysis. For the PLS model, the significance of the path coefficient was analyzed by collecting samples 1,000 times using the bootstrap method.
The four hypotheses are supported by the data. The estimates of each hypothesized path and their corresponding t-value derived from the bootstrap procedure in PLS regression were obtained. All path coefficients were significant at α = 0.05 (t-value > 1.96), supporting all hypotheses except the policy trust and business process link.
In conclusion, this study demonstrates that RFID performance evaluation can be estimated multi-dimensionally by empirically validating the IT business value model applied to RFID contexts. The following is a summary of the analysis: First, RFID technology, capabilities, and policy trust are related significant factors for business process performance. RFID for transparency and accuracy can reduce time and manpower. As RFID aims to improve business processes, increased profits after adoption are guaranteed.
Second, the effect on business process was verified by examining the differences in the awareness of business process performance among users before and after the introduction of RFID, that is, by using RFID experience as a moderating effect.
Third, EIT, such as RFID, cannot be easily adopted by a sole company. However innovative and advanced a technology is, nationwide regulations and policies must be established to realize actual performance. Thus, trust in RFID policy will be a critical factor for business process performance.
Policy trust has a significant influence before adoption, but its effect is relatively diminished after adoption. The effect of RFID technology and capabilities on performance becomes stronger in terms of improved business processes, whereas the policy effect gradually lessens. In other words, for companies planning to adopt RFID, policy support is important, but for those who have already adopted it, RFID technology and capabilities have greater influence on performance.
This study makes several contributions to academic and practitioner research. First, this study empirically analyzes business process performance by applying an IT business value model based on the resource-based view (RBV) to RFID. Technology and capability are important for producing business process performance using RFID. Second, this model proves the mediating effect of business process. Technology, policy trust, and capabilities are mediated by the business process, the latter being fully mediated. In other words, technology, capabilities and policy trust indirectly or directly influence business process performance through the business process. Third, the moderating effects of RFID adoption and Adaptation are identified. Before the introduction of RFID, technology, capabilities, and policy trust all had significant effects, but since the introduction, only technology proved to be significant, with its influence growing. Fourth, the business process based on RFID needs to be improved through the effective use of technology and capabilities to promote business performance. Managers have to focus on the business process and apply it to the whole process to help improve the complicated business process and achieve the ultimately desired performance.