This paper studies the determinant factors that influence the adoption of Radio Frequency Identification (RFID) by Logistics Service Providers (LSPs) in Malaysia. The influencing factors include costs of the technology, perceived risks of technology, organisational readiness, the size of the organisation, customer and competitor pressures and government support. To provide insight into these factors, this study employed a questionnaire survey. The data are obtained from 68 logistics companies. The results provided evidence that the adoption of technological innovations is influenced significantly by technological, organisational and environmental characteristics and that adopting new technologies will increase supply chain performance for the logistics industry in Malaysia.