A Competitive Perspective on Standard-Making: Kaufhof's RFID Project in Fashion Retailing

Kaufhof's RFID project is investigated from the Kaufhof-Gerry Weber pilot via unit-level to item-level roll-out and it is found that KauFhof-facing the trade-off between actively participating in joint standard-making and pursuing its competitive interests by the means of stand-alone efforts-decided for jointstandard-making.

Abstract

Many companies are considering implementing Radio Frequency Identification (RFID) technology to enhance supply chain management through better coordination and collaboration. However, until recently, the incompatibility of RFID systems hindered RFID adoption and impeded coordination and collaboration among adopters. Hence, companies demanded RFID standards. In light of joint RFID standard‐making under the umbrella of the industry association EPCglobal, this paper investigates Kaufhof's RFID project from the Kaufhof–Gerry Weber pilot via unit‐level to item‐level roll‐out. Guided by the literature on standard‐making, we find that Kaufhof – facing the trade‐off between actively participating in joint standard‐making and pursuing its competitive interests by the means of stand‐alone efforts – decided for joint standard‐making. The paper interprets that finding on the basis of two arguments: A commonly accepted standard is necessary for both individual benefits and overall increased supply chain efficiency; and typically occurring collective action risks are mitigated by collective governance mechanisms.