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Radio frequency identification (RFID) implementation in the service sector: A customer-facing diffusion model

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  • Lee, Lorraine S.
  • Fiedler, Kirk D.
  • Smith, Jeffery S.

Abstract

Cost-conscious businesses traditionally have focused on using radio frequency identification (RFID) systems to enhance the efficiency in the supply management/logistics process. These firms go through an implementation process that focuses on the supplier-facing, back-office operations. Drawing from observations from three case studies in the service sector, we develop a complimentary customer-facing model, which focuses the diffusion of RFID as originating from those activities associated with the delivery of the actual service offering. Our diffusion model contrasts the potential impact on organizational performance from both a supplier-facing and a customer-facing perspective. By focusing a firm's RFID strategy on customer-facing activities, a firm can use the technology to change its basis of competition from an efficiency-oriented strategy to one where RFID has more strategic implications such as providing the foundation for new products or services or by providing the infrastructure to enhance customers' value perceptions in order to strengthen customer loyalty.

Suggested Citation

  • Lee, Lorraine S. & Fiedler, Kirk D. & Smith, Jeffery S., 2008. "Radio frequency identification (RFID) implementation in the service sector: A customer-facing diffusion model," International Journal of Production Economics, Elsevier, vol. 112(2), pages 587-600, April.
    • Handle: RePEc:eee:proeco:v:112:y:2008:i:2:p:587-600
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    References listed on IDEAS

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    1. Doerr, Kenneth H. & Gates, William R. & Mutty, John E., 2006. "A hybrid approach to the valuation of RFID/MEMS technology applied to ordnance inventory," International Journal of Production Economics, Elsevier, vol. 103(2), pages 726-741, October.
    2. Nie, Winter, 2000. "Waiting: integrating social and psychological perspectives in operations management," Omega, Elsevier, vol. 28(6), pages 611-629, December.
    3. Richard B. Chase & David A. Tansik, 1983. "The Customer Contact Model for Organization Design," Management Science, INFORMS, vol. 29(9), pages 1037-1050, September.
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    Cited by:

    1. Gianna Giudicati & Massimo Riccaboni & Anna Romiti, 2013. "Experience, socialization and customer retention: Lessons from the dance floor," Marketing Letters, Springer, vol. 24(4), pages 409-422, December.
    2. Rana Mostaghel & Pejvak Oghazi & Hooshang M. Beheshti & Magnus Hultman, 2012. "Adoption of enterprise systems and radio frequency identification among service firms," The Service Industries Journal, Taylor & Francis Journals, vol. 32(15), pages 2435-2443, January.
    3. Zhou, Wei & Piramuthu, Selwyn, 2012. "Manufacturing with item-level RFID information: From macro to micro quality control," International Journal of Production Economics, Elsevier, vol. 135(2), pages 929-938.
    4. Joerß, Tom & Hoffmann, Stefan & Mai, Robert & Akbar, Payam, 2021. "Digitalization as solution to environmental problems? When users rely on augmented reality-recommendation agents," Journal of Business Research, Elsevier, vol. 128(C), pages 510-523.
    5. Tsai, Chieh-Yuan & Chang, Hui-Ting & Kuo, Ren Jieh, 2017. "An ant colony based optimization for RFID reader deployment in theme parks under service level consideration," Tourism Management, Elsevier, vol. 58(C), pages 1-14.
    6. Ferrer, Geraldo & Dew, Nicholas & Apte, Uday, 2010. "When is RFID right for your service?," International Journal of Production Economics, Elsevier, vol. 124(2), pages 414-425, April.
    7. Chao, Shih-Liang & Lin, Pei-Shan, 2009. "Critical factors affecting the adoption of container security service: The shippers' perspective," International Journal of Production Economics, Elsevier, vol. 122(1), pages 67-77, November.
    8. Youngjung Geum & Sungjoo Lee & Daekook Kang & Yongtae Park, 2011. "The customisation framework for roadmapping product-service integration," Service Business, Springer;Pan-Pacific Business Association, vol. 5(3), pages 213-236, September.
    9. Véronneau, Simon & Roy, Jacques, 2009. "RFID benefits, costs, and possibilities: The economical analysis of RFID deployment in a cruise corporation global service supply chain," International Journal of Production Economics, Elsevier, vol. 122(2), pages 692-702, December.

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