A cross-national comparison of perceived strategic importance of RFID for CIOs in Germany and Italy

Purpose: Drawing from literature on innovation, strategy and culture the objective of this study is to explore the role of perceived potentials and perceived strategic importance on CIOs' perspective on RFID technology in two different cultural settings. Methodology: Based on survey responses from 463 German and 157 Italian IT decision makers we analyzed the data with PLS structural equation modeling. Findings: We show that perceived potentials of RFID influence the perceived strategic importance which positively influences CIOs' intention to invest in RFID. The composition of perceived potentials affecting the strategic importance of RFID differs significantly in both cultures. In Germany, potentials attributed to RFID are improving quality, automating manpower, reducing counterfeits, and improving customer service. Italian CIOs value reducing stock inconsistencies, optimizing stock keeping, and improving customer service as RFID potentials. Regardless of culture, findings show that company size hardly has impact on perceived strategic importance. Originality/value: This research shows on a large empirical basis cultural differences in the perception of RFID in two countries using PLS.