The role of radio frequency identification (RFID) in improving the supply chain performance of small and medium construction companies in Australia and enhancing their competitiveness in the marketplace

The role of radio frequency identification (RFID) in improving the supply chain performance of small and medium construction companies in Australia and enhancing their competitiveness in the marketplace

Radio Frequency Identification (RFID) is being utilised more in Information Technology due to its features and capability that assist in enhancing productivity, efficiency in improving supply chain systems, and minimising cost. It is predicted to provide several advantages for both public and government organisations. RFID can increase the consistency and scalability of IT systems that permit organisations such as regional governments to focus their attention on their key business functions, including strategy formulation and adaptation. Limited studies have been conducted on the implementation of RFID in the construction industry to develop supply chain systems to improve performance. Moreover, there is an absence of exploratory research and studies that offer a comprehensive and holistic examination of the factors that impact the implementation of RFID. To date, there is also an absence of empirical studies regarding the factors that impact the employment of RFID in Australian SMEs in the construction industry.

This research examines the adoption and use of information communication technologies, in particular RFID technology, for improving the performance of supply chain management systems in SME construction companies in Australia. The research objectives are to analyse the state of supply chain management systems in SME construction companies in Australia; and the potential of RFID technologies in helping to overcome the problems and challenges facing these companies.

This study aims to explain the capability for creating value resulting from the adoption of RFID in SME construction companies in Australia. This research identifies the factors that are expected to impact its implementation and ascertains the factors that are essential for management to focus on when planning to implement RFID. These factors include emerging policies for adoption of RFID, expected advantages of implementation of RFID, along with highlighting the challenges and issues created by the adoption of RFID. The research model adopts a combination of three theories derived from the literature, namely, Diffusion of Innovation Theory, the Technology Organisation-Environment (Stoekel and Quirke) framework, and the Actor Network theory.

This study aims to enhance knowledge about how information communication technology can play a role in improving supply chain performance, and how to optimise the use of supply chains to improve the performance of these businesses. A quantitative approach is used in this study to identify the key themes and constructs in a comprehensive survey of IT decision-makers within SME construction companies in Australia.

The intention of this research is also to increase knowledge regarding factors that impact decision-making regarding the adoption of RFID within SME construction companies based in Australia. The research method used for the research is quantitative. As an in-depth study, this empirical study has involved IT managers in Australian-based SME construction companies and their employees‟ interaction with RFID suppliers. Through this, the study achieves the aim of providing in-depth insights into those factors that are perceived most likely to influence their employment of RFID; and identifying all vital factors on which to focus when planning to implement RFID, including the emerging legal setting that influences RFID implementation, expected merits of RFID implementation; and problems and issues that face SMEs when deciding to employ RFID. The study was conducted among 297 IT employees from 47 SMEs in the construction sector and RFID suppliers to conclude the outcomes of the exploratory stage. Factors such as compatibility, complexity, cost, security concerns, size of the firm, and expected advantages from the adoption of RFID are examined. The results and conclusion of the research can be used for firms‟ decision-making on whether to invest or not in the adoption of RFID.

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