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

Mapping the benefits and costs associated with process innovation: The case of RFID adoption: "Publication year: 2011
Source: Technovation, In Press, Corrected Proof, Available online 10 May 2011
Raluca, Bunduchi , Clara, Weisshaar , Alison U., Smart
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...
 Highlights: ► We examine the magnitude of benefits and costs of innovation during diffusion across sectors. ► For early adopters, cost of capital, development, ethical and simple direct implementation costs predominate. ► For early majority, the emphasis is on initiation costs, direct and indirect implementation costs. ► As technology diffuses from early adopters to early majority the focus shifts from direct to indirect benefits."