The Role of Community-led Governance in Innovation Diffusion: The Case of RFID Waste Pricing System in the Republic of Korea

Abstract

This study explores the role of community-led governance in innovation adoption by drawing determinants of RFID waste pricing system adoption. The Ministry of Environment of the Republic of Korea adopted an individual-incentive based RFID waste pricing system for apartment complexes in 2013 in an effort to reduce food waste. After invention and wide usage during World War Two, RFID has received lots of intention especially in public policy field. This innovative system using RFID machines and RFID tag-embedded cards showed effectiveness in waste reduction. Residents of each apartment complex decide whether and when to adopt the RFID system. Based on innovation diffusion theory, we would like to draw which determinant factors most affect RFID pricing system adoption. Although innovation diffusion is dependent on community level, many previous studies surveyed individuals and asked them about organizational adoption. We use non-perceptional data representing the characteristics of the level of apartment complex. This study, relying on ecological variables collected from 2018 apartment complexes across 25 autonomous districts located in Seoul City, explores significant factors related to the process of the RFID adoption. According to the empirical results, there were two important determinants: how much information the government provided, and how the apartment complex residents have opportunity to gather opinion and decide the RFID pricing system adoption. We emphasize the importance of community-led governance in adopting an innovative environmental system and how community-led governance contributes to sustainable innovation adoption.

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