Theorizing distributed ledger technology - A supply chain management perspective

Abstract

Purpose The purpose of this paper is to develop a business theoretical foundation for distributed ledger technology (DLT) in supply chain management. This consists of describing the theoretical impact of DLT on transaction cost economics, agency theory and network theory from a SCM perspective. Design/methodology/approach We conduct five explorative case studies of five different DLT-based solutions that are implemented in current supply chains. The authors interrogate DLT providers as well as users. Based on the empirical data, the authors derive the impact on three major theories in the field of supply chain management. Findings The paper reveals the theoretical impact of DLT on the above-mentioned theories in the field of SCM. DLT-based solutions reduce the transaction costs and provides new options to coordinate market solutions better than implied before. Furthermore, in contrast to existing implications of network theory, DLT benefits from the size of the network as they reduce the chances for opportunistic behavior and provide more transparency. Research limitations/implications The paper is based on findings of early stage applications of DLT in supply chain management. Thus, theoretical impacts are expected to be added at an advanced stage. However, at this point of time the article builds a theoretical foundation for future research on DLT. Practical implications The identification of theoretical impacts helps to understand the practical value of DLT in supply chain management. Original/value This is one of the first papers to add a theoretical foundation to DLT research in supply chain management that is dominated by application-oriented contributions.