The impact of RFID on service organizations: a service profit chain perspective

Purpose The purpose of this paper is to examine the effect of radio frequency identification (RFID) implementation on service performance. Design/methodology/approach - This study utilizes a case study methodology to explain the impact of RFID on performance. The service profit chain is used as the overarching framework to facilitate the discussion. Qualitative methods in the form of in-depth interviews, observation, and participation are employed for the collection of data. Findings - The results in the paper indicate that RFID implementation has a significant impact on the consumer components (quality, value, satisfaction, and financials) of the service profit chain. The implementation also has an effect on the technical aspects of internal operations (internal quality and productivity) but is limited in how it affects the employee components (satisfaction, capability, and loyalty). Research limitations/implications - The paper denotes the potential impact on performance of RFID implementation through the utilization of a qualitative research approach, which limits the scope of the findings. Also, the focal organizations are non-profits, which can also hinder generalizability. Originality/value - This research is one of the first to empirically examine the way in which RFID implementation can affect operational and financial performance. In doing so, valuable insights are gained as to how RFID can be used to improve existing performance. Additionally, areas are identified that can be investigated to further benefit from the implementation.