Digital technology adoption and SC recoverability. The mediating role of relationship transparency and SC production risk management capabilities

Abstract

This study addresses a gap in the current research by investigating the relationship between BC based financial solutions and SC recoverability and financial resilience. Previous research provides little empirical evidence on how and under what conditions Fintech improves the manufacturing firm's financial resilience. This empirical research draws on the resource base view (RBV) to investigate the role of Fintech as a driver of better relationship transparency and SC production risk management for financial resilience. The data was collected from 295 engineering manufacturers in India. A key contribution of this study is that it provides new insights by highlighting the role of Blockchain Technology (BCT), built on the Ethereum-based system, in strengthening SC recoverability and enhancing relationship transparency. We present a research framework grounded in the Resource-Based View (RBV) that illustrates how blockchain technology (BCT) can provide firms with critical competencies for developing relationship transparency and managing production risks, thereby enhancing financial resilience in the SC. Relationship transparency, essential for SC recoverability, is pivotal in establishing the link between BCT and SC recoverability. Our findings advise SC managers that relationship transparency improves SC recoverability and may be an important source of financial resilience.