Blockchain technology in the supply chain: learning from emerging ecosystems and industry consortia

Abstract

Blockchain is a potentially disruptive technology that supports immutability, transparency, and traceability for digital transactions. Blockchain shows promise for tackling several challenges in managing contemporary supply chains. Blockchain technology requires collaboration, which has resulted in the formation of many consortia to advance its adoption. Blockchain consortia are embryonic digital business ecosystems (DBE). We discuss the role of these consortia in addressing key blockchain challenges in business and supply chain applications. Dominant considerations central to a consortium's formation and sustainability are highlighted, including its governance, technical focus, and participation issues. For seven prominent blockchain consortia that encompass supply chain applications, we analyze the type of partnership, scope of activities, objectives and business model. Based on the study, five propositions are presented regarding the nature of blockchain consortia, the drivers for their formation, their collaboration requirements, the impact on relationships, and the influence of industry characteristics on a blockchain consortium's focus and characteristics.