Keywords: competitive advantage, cost shifting, RFID, radio frequency identification, supply chain management, SCM, strategic value, inter-organisational communication, inter-organisational cooperation
A strategic examination of Radio Frequency Identification in Supply Chain Management
Businesses are gaining interest in Radio Frequency Identification (RFID) technology, but few studies exist regarding its strategic value in Supply Chain Management. This study combines the theoretical background of technology and sustainable competitive advantage with specific, actionable business cases in which firms currently are employing RFID technology to shift costs and to improve overall industry structure, thereby leading to sustainable competitive advantage. From this study, it is evident that inter-organisational communication and cooperation are even more crucial in truly leveraging the benefits of RFID technology. Companies must negotiate with each other so that they can determine accountability, responsibility, data standards, hardware standards, network standards, and the like.