Radio frequency identification (RFID) technology as a strategic tool towards higher performance of supply chain operations in textile and apparel industry of Malaysia

Abstract

The Textile and Apparel industry of Malaysia used to contribute about 1.2% of gross domestic product (GDP) in the past. However, this position has followed a reverse trend in recent years. The imports were increased as compared to the exports which decreased the overall contribution of Textile and Apparel industry between 2015 and 2016. To address this issue, this study examined the effective supply chain activities through radio frequency identification (RFID) using survey method to collect the necessary data. Questionnaires were distributed among the employees of Textile and Apparel companies. While analyzing the data by using PLS-SEM, it was found that RFID was contributing majorly in supply chain operations and maintained significant and positive effect on the performance of supply chain. Moreover, staff services quality had moderating role between RFID and the operations of Textile and Apparel industry. The study is one of the first attempts to examine the effect of RFID on supply chain operations of Textile and Apparel companies. Thus, the current study is helpful for practitioners to resolve the issues of concerned industry.