Comparison of benefits of radio frequency identification: Implications for business strategic performance in the US and Korean retailers

This study explores a model to compare the benefits of RFID technology on supply chain management by focusing on retail industry. A path model was estimated to examine structural relationships among technological infrastructure, RFID benefits, and business strategic performance in the U.S. (n=70) and Korean samples (n=87). Result showed that technological infrastructure was required to more improve inventory management, store operation and demand management, leading to business strategic performance. Especially, data system automation was perceived as a prerequisite for improving inventory management for both countries. Hardware/software application was significantly related to the RFID benefit of inventory management for U.S. retailers, whereas, it was related to the benefits of efficient store operation and demand management for Korean retailers. Business strategic performance was significantly determined by RFID benefit factors (e.g., inventory management and demand management) for U.S. retailers and Korean retailers. The managerial implication for business to business strategic performance in the U.S. and Korean retail industries was discussed from a retailer's perspective. (C) 2008 Elsevier Inc. All rights reserved.