Timing of RFID adoption in a supply chain / Seungjin Whang in Management science, Vol. 56 N° 2 (Fevrier 2010)  

Public ISBD [article]  inManagement science > Vol. 56 N° 2 (Fevrier 2010) . - pp. 343-355 Titre : Timing of RFID adoption in a supply chain Type de document : texte imprimé Auteurs : Seungjin Whang, Auteur Année de publication : 2010 Article en page(s) : pp. 343-355 Note générale : Management Langues : Anglais (eng) Mots-clés : Application contexts/sectors Supply chain and logistics IT policy management Economics of IS diffusion adoption Index. décimale : 658 Organisation des entreprises. Techniques du commerce Résumé : This paper studies the incentives behind the adoption of radio-frequency identification (RFID) in a supply chain. One prominent feature of RFID technology is that once RFID tags are attached on the items at an upstream site, the same tags can be reused at its downstream sites at lower or zero variable cost. This creates an interesting, one-sided “free-rider” problem, where the downstream would wait to free-ride on the upstream's first move, but not vice versa. Using a stylized game-theoretic model, we characterize the equilibrium strategies of the two firms. Compared to the first-best solution, firms in equilibrium tend to adopt too late. We then study the dual benefits of technology coordination between the two firms and find that it would not only save redundant costs of putting tags, but also speed up the downstream's RFID adoption. We also show that the equal-cost-split arrangement shifts the benefit of free-riding to the upstream, thereby mitigating the negative impacts in many cases. But it may distort the market when it operates in the optimal manner. The general message of the model is that technology coordination and cost-split each contribute to the mitigation of the free-rider problem in RFID adoption. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/56/2.toc [article] Timing of RFID adoption in a supply chain [texte imprimé] / Seungjin Whang, Auteur . - 2010 . - pp. 343-355. Management Langues : Anglais (eng) in Management science > Vol. 56 N° 2 (Fevrier 2010) . - pp. 343-355 Mots-clés : Application contexts/sectors Supply chain and logistics IT policy management Economics of IS diffusion adoption Index. décimale : 658 Organisation des entreprises. Techniques du commerce Résumé : This paper studies the incentives behind the adoption of radio-frequency identification (RFID) in a supply chain. One prominent feature of RFID technology is that once RFID tags are attached on the items at an upstream site, the same tags can be reused at its downstream sites at lower or zero variable cost. This creates an interesting, one-sided “free-rider” problem, where the downstream would wait to free-ride on the upstream's first move, but not vice versa. Using a stylized game-theoretic model, we characterize the equilibrium strategies of the two firms. Compared to the first-best solution, firms in equilibrium tend to adopt too late. We then study the dual benefits of technology coordination between the two firms and find that it would not only save redundant costs of putting tags, but also speed up the downstream's RFID adoption. We also show that the equal-cost-split arrangement shifts the benefit of free-riding to the upstream, thereby mitigating the negative impacts in many cases. But it may distort the market when it operates in the optimal manner. The general message of the model is that technology coordination and cost-split each contribute to the mitigation of the free-rider problem in RFID adoption. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/56/2.toc

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