In this paper DIM methodology is used in order to examine the adoption RFID technology for the purpose of traceability. But the scope is limited because of exploratory nature of the study and a very low rate of growth in the adoption of RFID systems in the garments sector. The cases that are analyzed or reported includes (Pigni et al., 2006) and (Loebbecke, Palmer, & Huyskens, 2006; Politecnico, 2007). In order to make a dependable evaluation of the acceptance factors many important variables are included in the model. Resultantly the first-order model is used as it is the only functional form of description for this case where the main characteristics are to be defined as an “as is” scenario. It is also rational to refer to the study of Gregor and Johnston’s (2000) to have an idea about the various structural properties that are explored to impact the RFID development that can be summarized in the following viewpoints:
External factors: These factors describe the external setting and figure out those factors too that are out of control in relation to a single firm. Among these factors that are uncontrollable then market powers and regulatory actions and other socioeconomic factors (Kurnia & Johnston, 2000).
Industry level factors: It includes a detailed analysis of structural properties that are associated with the industry. These structural properties include alliances, presence of competitors and coordinating bodies and the level of trust among players. The distribution of typical and interoperable systems or technologies and the significant mass of participants are also included in these factors (Want, 2006).
Firm level factors: These factors are related to particular firm regarding adoption of the system including the capabilities possessed by organization (Tang, 2007). These capabilities include monetary resources possessed by the firm, technical skills of the employees, technological infrastructure in the firm, the level of commitment on the part of management and managements’ competences and skills. Another factor is the nature of the technology that can be divided in to perceived costs and benefits, risks faced by the firm, next of kin benefit, configuration with business goals (Kurnia &Johnston, 2000). Moreover critical mass and the degree of consistency and interoperability.