The impact of radio frequency identification technology utilization on supply chain transparency and agility dimensions of the responsiveness view

Purpose This study explores radio frequency identification (RFID) utilization and its relationship to supply chain transparency and operational agility from a responsiveness view of logistics and supply chain management. We examine how organizations achieve the operational dimension of responsiveness – agility, by leveraging two dimensions of supply chain transparency, stakeholder visibility and supplier traceability. Design/methodology/approach A structural equation model is proposed and evaluated using data collected from 212 supply chain managers in the manufacturing and distribution area in the US. Findings The result reveals that two dimensions of supply chain transparency (supplier traceability and stakeholder visibility) mediate the relationship between a firm’s technology utilization (RFID) and responsiveness capability, which in turn results in higher logistics service capability. Specifically, RFID utilization exerts an impact via two dimensions of supply chain transparency. Supply chain transparency translates information collected from IT and disseminates it among stakeholders, leading to the development of competitive capabilities. Research limitations/implications Our research contributes to the theory related to the supply chain responsiveness view. Combined with the resource-based view (RBV), we answer research calls to investigate the role of supply chain responsiveness in supply chain management and for empirical studies with implications for supply chain transparency. Practical implications Organizations can use the result of this study to ensure the robustness of business operations by improving supply chain agility and logistics service performance. Originality/value This study examines the role of RFID utilization in enhancing supply chain transparency capability and operational agility, focusing specifically on how stakeholder visibility and supplier traceability – key dimensions of transparency – mediate the relationship between RFID utilization and responsiveness capability.