Why RFID Adoption and Diffusion takes Time: The Role of Standards in the Automotive Industry

The adoption and diffusion of RFID technology take longer time than it was expected years ago. While few industries adopted RFID right away others are reluctant and took up a ‘wait and see’ position. Especially standards play a major role. Even standards are available today, many industries announced additional requirements for their specific processes. As an example we analyze the developments regarding RFID standardization in the automotive industry and identify three central reasons why the adoption and diffusion is slow compared to other industry sectors like retail and consumer goods: (1) Skepticism about EPCglobal and the capability of the Electronic Product Code for processes in the automotive industry, (2) a long lasting standardization process through various national and international committees, and (3) the lack of a mandatory announced by a dominant supply chain partner.