Mapping the benefits and costs associated with process innovation: the case of RFID adoption

Raluca Bunduchi, Clara Weisshaar, Alison Smart

Research output: Contribution to journalArticle

54 Citations (Scopus)

Abstract

The successful implementation of any innovation requires an understanding of its benefits and costs. This study examines the changes in the magnitude of costs and benefits associated with technology process innovation adoption as the innovation diffuses across different industries. Using RFID as an exemplar technology, the study shows that the magnitude of benefits and costs associated with technological process innovation adoption within different industries varies as technology diffuses beyond early adopters to the early majority. During the early stages of technology evolution, the development cost, the cost of capital, ethical costs and simple direct implementation costs (in the form of the cost of tags) predominate. As a dominant design emerges the profile of costs changes with the emphasis on initiation costs, more holistic direct implementation costs, and indirect implementation costs. A similar change in the emphasis of benefits is observed, with a shift from direct to indirect benefits being noticeable as the technology moves from early adopters to early majority adopters. Our findings help to explain the difficulties in consistently measuring innovation outcomes observed in the innovation implementation literature, and emphasise the need to take into consideration the stage of technology development as a significant factor that influences the realised outcomes from innovation implementation.
Original languageEnglish
Pages (from-to)505-521
Number of pages17
JournalTechnovation
Volume31
Issue number9
Early online date10 May 2011
DOIs
Publication statusPublished - Sep 2011

Fingerprint

Radio frequency identification (RFID)
Innovation
Costs
Costs and benefits
Radio frequency identification
Process innovation
Industry

Keywords

  • process innovation
  • innovation costs
  • innovation benefits
  • innovation adoption
  • RFID

Cite this

Mapping the benefits and costs associated with process innovation : the case of RFID adoption. / Bunduchi, Raluca; Weisshaar, Clara; Smart, Alison.

In: Technovation, Vol. 31, No. 9, 09.2011, p. 505-521.

Research output: Contribution to journalArticle

Bunduchi, Raluca ; Weisshaar, Clara ; Smart, Alison. / Mapping the benefits and costs associated with process innovation : the case of RFID adoption. In: Technovation. 2011 ; Vol. 31, No. 9. pp. 505-521.
@article{079820e5b4b74af3b1d7f993348ff46c,
title = "Mapping the benefits and costs associated with process innovation: the case of RFID adoption",
abstract = "The successful implementation of any innovation requires an understanding of its benefits and costs. This study examines the changes in the magnitude of costs and benefits associated with technology process innovation adoption as the innovation diffuses across different industries. Using RFID as an exemplar technology, the study shows that the magnitude of benefits and costs associated with technological process innovation adoption within different industries varies as technology diffuses beyond early adopters to the early majority. During the early stages of technology evolution, the development cost, the cost of capital, ethical costs and simple direct implementation costs (in the form of the cost of tags) predominate. As a dominant design emerges the profile of costs changes with the emphasis on initiation costs, more holistic direct implementation costs, and indirect implementation costs. A similar change in the emphasis of benefits is observed, with a shift from direct to indirect benefits being noticeable as the technology moves from early adopters to early majority adopters. Our findings help to explain the difficulties in consistently measuring innovation outcomes observed in the innovation implementation literature, and emphasise the need to take into consideration the stage of technology development as a significant factor that influences the realised outcomes from innovation implementation.",
keywords = "process innovation, innovation costs, innovation benefits, innovation adoption, RFID",
author = "Raluca Bunduchi and Clara Weisshaar and Alison Smart",
year = "2011",
month = "9",
doi = "10.1016/j.technovation.2011.04.001",
language = "English",
volume = "31",
pages = "505--521",
journal = "Technovation",
issn = "0166-4972",
publisher = "Elsevier Limited",
number = "9",

}

TY - JOUR

T1 - Mapping the benefits and costs associated with process innovation

T2 - the case of RFID adoption

AU - Bunduchi, Raluca

AU - Weisshaar, Clara

AU - Smart, Alison

PY - 2011/9

Y1 - 2011/9

N2 - The successful implementation of any innovation requires an understanding of its benefits and costs. This study examines the changes in the magnitude of costs and benefits associated with technology process innovation adoption as the innovation diffuses across different industries. Using RFID as an exemplar technology, the study shows that the magnitude of benefits and costs associated with technological process innovation adoption within different industries varies as technology diffuses beyond early adopters to the early majority. During the early stages of technology evolution, the development cost, the cost of capital, ethical costs and simple direct implementation costs (in the form of the cost of tags) predominate. As a dominant design emerges the profile of costs changes with the emphasis on initiation costs, more holistic direct implementation costs, and indirect implementation costs. A similar change in the emphasis of benefits is observed, with a shift from direct to indirect benefits being noticeable as the technology moves from early adopters to early majority adopters. Our findings help to explain the difficulties in consistently measuring innovation outcomes observed in the innovation implementation literature, and emphasise the need to take into consideration the stage of technology development as a significant factor that influences the realised outcomes from innovation implementation.

AB - The successful implementation of any innovation requires an understanding of its benefits and costs. This study examines the changes in the magnitude of costs and benefits associated with technology process innovation adoption as the innovation diffuses across different industries. Using RFID as an exemplar technology, the study shows that the magnitude of benefits and costs associated with technological process innovation adoption within different industries varies as technology diffuses beyond early adopters to the early majority. During the early stages of technology evolution, the development cost, the cost of capital, ethical costs and simple direct implementation costs (in the form of the cost of tags) predominate. As a dominant design emerges the profile of costs changes with the emphasis on initiation costs, more holistic direct implementation costs, and indirect implementation costs. A similar change in the emphasis of benefits is observed, with a shift from direct to indirect benefits being noticeable as the technology moves from early adopters to early majority adopters. Our findings help to explain the difficulties in consistently measuring innovation outcomes observed in the innovation implementation literature, and emphasise the need to take into consideration the stage of technology development as a significant factor that influences the realised outcomes from innovation implementation.

KW - process innovation

KW - innovation costs

KW - innovation benefits

KW - innovation adoption

KW - RFID

U2 - 10.1016/j.technovation.2011.04.001

DO - 10.1016/j.technovation.2011.04.001

M3 - Article

VL - 31

SP - 505

EP - 521

JO - Technovation

JF - Technovation

SN - 0166-4972

IS - 9

ER -