The purpose of this paper is two‐fold: first, to deliver a review of the researches conducted on the topic of radio frequency identification (RFID) adoption and the key factors that play a big role in its adoption and second, to develop a systems thinking perspective of RFID adoption through its profitability power generation and engagement. The author illustrates the concepts drawing on the experience of five case studies already presented in the literature, all the way from service industries to highly developed technological industries. Thereafter, a list of key variables from proposed case studies are identified. Then, a causal diagram relating identified variables in some circulars is constructed and modeled.
The paper identifies key elements of RFID through the review of six case studies. It obtains appropriate data from second sources, for some of these case studies, to make the analysis possible.
To make management systems functional and successfully operational RFID solutions can be used to reduce operating costs through decreasing the labor costs, including automation, improving tracing and tracking, and preventing the lost of materials under any circumstances. RFID is an appropriate technology for profit generation, efficiency improvement, and productivity enhancement.
The emphasis is put on delivering business values through effective variables and from there RFID can be related to profitability using systems thinking concepts. Since, to the best of this author's knowledge, this is the first paper that relates RFID technology to profitability using systems thinking concepts, it makes a significant contribution to the RFID literature.
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