Yangchun Xiong, Hugo K.S. Lam, Ajay Kumar, Eric W.T. Ngai · 6 authors
Purpose Although there have been considerable discussions on the business value of adopting blockchain in supply chains, it is unclear whether such blockchain-enabled supply chains (BESCs) can help firms mitigate the negative impact resulting from the recent COVID-19 pandemic. This study aims to answer this important question. Design/methodology/approach The authors conduct an event study to quantify the financial effects of the COVID-19 pandemic and compare the differences in such effects between treatment firms that have adopted BESCs and matched control firms that have not adopted BESCs. The authors also perform a regression analysis to examine how the role of BESCs in mitigating COVID-19's negative impact varies across firms with different levels of supply chain leanness and complexity. The analysis is based on 88 treatment firms and 88 matched control firms, all of which are publicly listed on the US stock markets. Findings The test results suggest that although both the treatment and control firms are negatively affected by the COVID-19 pandemic, the effect is less negative for the treatment firms compared to the control firms, demonstrating the role of BESCs in mitigating the negative impact caused by the COVID-19 pandemic. Moreover, the mitigating role of BESCs is more pronounced for firms with lean and complex supply chains. Originality/value This study is among the first to provide empirical evidence on the mitigating role of BESCs during the COVID-19 pandemic, highlighting the importance of adopting blockchain in supply chains with high uncertainties and disruption risks.
Jul 9, 2021·Proceedings of the 9th World Construction Symposium 2021 on Reshaping construction: Strategic, Structural and Cultural Transformations towards the 'Next Normal'
Sri Lankan (SL) construction industry has been trading with overseas suppliers to fulfil the need for material and technology. This process faces many issues due to the poor digitalisation of the industry. The financial flow of international trade is dominated by financial institutions (i.e., banks) and the industry faces many issues e.g., delays, additional charges, complexity, lack of information sharing, and requiring legal assistance. Blockchain Technology (BCT) has emerged as a revolutionary digital technology in the past decade. Key features of BCT i.e., immutability, decentralisation, distributed ledgers, enhanced security, consensus, and speed have been identified to provide solutions for issues in the various industries including the supply chain. Hence this paper aims to investigate the feasibility of using BCT to solve existing issues in financial flow with special reference to the barriers to adopt it in the international trade of the Sri Lankan construction industry. As the data collection method, an expert opinion forum was carried out by involving both international trade experts and blockchain specialists in the Sri Lankan construction industry. Key findings present that BCT can solve issues such as transparency issues and poor information sharing between parties, excessive documentation and complexities, payment delays, and financial costs in the international trade of the SL construction industry. Further, findings revealed that the government’s approval, legal requirements, lack of knowledge and technology, and reluctance to change the industry can act as barriers to adopt BCT in Sri Lanka.
Using a systematic review of literature, this study identifies the potential impact of blockchain solutions for augmenting supply chain resilience (SCR) to cybercrime. This rich literature synthesis forms the basis of a novel theoretical framework that provides guidance and insight for blockchain adopters and vendors as well as delineate palpable benefits of this novel technology. An interpretivist philosophical design and inductive reasoning are adopted to conduct the systematic review of literature. A total of 867 papers were retrieved from Scopus database between the years of 2016 and 2020 and subsequently analysed via abductive reasoning, grounded theory and a thematic meta-analysis; where the latter was achieved using a scientometric approach and software tools such as VOS viewer and NVivo. Scientometric analysis revealed the most prolific countries, sources, publications and authors who reside at the vanguard of blockchain developments and adoption. Subsequent grounded theory analysis identified six main clusters of research endeavour viz: “case study”, “challenges and opportunity”, “traceability”, “smart contract” “blockchain and IoT” and “data security”. From 28 SCR metrics identified within literature, five were found to have been positively impacted by blockchain technology solutions, namely: “visibility”, “collaboration”, “integration”, “risk management” and “information sharing.” Prominent applications of blockchain technology in practice were “traceability systems” and “smart contracts” which are often implemented separately or in combination and primarily in food supply chains. This research constitutes the first study to critically synthesise extant literature for evaluation of blockchain solutions’ implication on SCR metrics. New perspectives obtained provided a basis for the novel theoretical framework for implementation that will be valued by software developers and adopting organizations, whilst creating new direction for researchers interested in blockchain technology.
The digital transformation of supply chains should revolutionize entire management processes and improve various aspects of sustainability. In particular, the plans of Industry 4.0 aim towards a digitization of several procedures by exploiting emerging technologies such as the Internet of Things, RFID and blockchain. The purpose of this study is to highlight how order and disruption events processes can be improved with the adoption of emerging technologies and how this reflects on the improvement of sustainability aspects. The study is based on the comparison of two simulation scenarios between three actors in the cheese supply chain. In particular, a first traditional scenario “as is” is simulated without the use of new technologies and is compared to a second scenario “to be” that adopts IoT, RFID and blockchain. The results show an improvement in time performance for managing both perfect and non-compliant orders. The developed framework highlights the impact of new technologies on sustainability aspects, showing further managerial implications.
Taner Dursun, Fatih Birinci, Büşra Alptekin, İsa Sertkaya · 7 authors
The aim of the research is to discuss what challenges and problems Blockchain can solve in Supply Chain, and what is the future to come for the Supply Chain Management. Blockchain can be defined as a chain of the block that contains information. The technique is intended to timestamp digital documents so that it's not possible to backdate them or temper them. The blockchain is used for the secure transfer of items like money, property, contracts, etc. without requiring a third-party intermediary like bank or government. Once data is recorded in a blockchain, it is very difficult to change it. The implementation of Blockchain Technology can help organizations reduce order quantities, lower selling prices and reduce the target-inventory levels.
The construction industry has dynamic supply chains with multiple suppliers usually engaged in short-term relationships. Government legislation, novel types of payment agreements, conventional information technology solutions, and supply chain management best practices have endeavoured to solve payment-related financial issues in the construction industry, which are mainly caused by the complexities of the construction supply chain. Nevertheless, payment-related issues persist as one of the key challenges in the industry. Applications of blockchain technology–a trusted, distributed data storing mechanism–along with smart contracts are gaining focus as solutions for complex interorganisational processes. A smart contract is a self-executing script that codifies a set of rules or agreements between multiple parties and runs across the blockchain network. This paper identifies the suitability of blockchain and smart contract technologies in solving payment issues in the construction industry. An expert forum of construction industry stakeholders served as the primary data collection method through a structured questionnaire. The key finding of the paper is that blockchain and smart contract powered solutions can significantly mitigate the payment and related financial issues in the construction industry, including partial payments, nonpayments, cost of finance, long payment cycle, retention, and security of payments.
The risk of supply chain disruption is usually related to daily disturbances in supply chain operations (e.g., demand fluctuations) and some emergency risks, such as earthquakes and epidemic outbreaks. During a crisis, companies need agility to quickly find new suppliers and open auxiliary sales channels to meet customer needs and remain competitive. However, identifying “event” is one of the most difficult challenges of current decision support systems. If the system encounters an emergency, it is usually unable to promptly notify users of the warning to avoid risks. A sensible solution is to incorporate the real-time event-monitoring system into SCM (i.e., supply chain management) in order to share emergency information in the early stage for preemptive management in the supply chain. On the other hand, in order to process confidential supply chain data with other members, the SCM infrastructure requires secure data sharing. The blockchain-based SCM system can improve the transparency of traceability to ensure that the supply chain system provides high-quality products and protects data privacy and security. The view is taken; therefore, in this work, we combined a method of real-time event detection using collected Twitter data and blockchain technology for event monitoring to improve the visibility of the supply chain system and take preemptive measures for risk avoidance. The experiments show some interesting results and potentials for future work in the field of the agile supply chain.
Hossein Baharmand, Naima Saeed, Tina Comes, Matthieu Lauras
Blockchain technology promises to improve the efficiency, transparency, and accountability of humanitarian operations. Yet at the same time, especially the humanitarian context with its characteristic volatility poses unique challenges to any technology. Most prominent are the humanitarian principles that are fundamental to humanitarian operations. These ethical principles are set to protect the most vulnerable populations. Designing blockchain projects in the humanitarian context therefore requires a systematic framework that helps humanitarians make critical choices. While some design instructions can be found for commercial applications, the humanitarian context requires different design principles and guidelines. To address the lack of a design framework for humanitarian blockchain projects, in this paper, we design and validate guidelines for humanitarian blockchain-projects. We use data from two humanitarian blockchain pilots in Jordan and Kenya to design our framework. Thereafter, we benchmark its applicability and relevance against another pilot in Vanuatu. Our framework highlights the need to consider infrastructure, end-users, ethics, stakeholders, and privacy in contexts, scalability and in/out mechanisms in technology, and knowledge/skills and intellectual property in organisation-related design requirements.
David Gligor, Kishore Gopalakrishna Pillai, İsmail Gölgeci̇
New technologies, such as artificial intelligence (AI), blockchain, and big data analytics, can shape how B2B relationships are managed and how dark side effects are manifested in B2B relationships. Moreover, despite several advances in the dark side of B2B relationships research, concerns have recently been raised that this stream is under theorized, and the focus has been on the manifestations of the dark side and not on the underlying processes. We address these challenges by examining how the emergence of new technologies has the potential to transform B2B relationships and lead to the emergence of dark side effects through processes that have not been hitherto examined or understood. In the process, we further illustrate how theories that have been largely neglected within this literature (i.e., social dominance, organizational inertia, organizational information processing , and role theory) can provide novel insights when exploring the dark side of B2B relationships.
Пэйдэ Лю, Ayad Hendalianpour, Mohammad Hamzehlou, Mohammad Reza Feylizadeh · 5 authors
Globalization initiated the challenges in Supply Chain (SC) such as management and control. In this situation, Blockchain as a digital distributed ledger can guarantee clarity, tractability, and safety. Many case studies proved that we can use Blockchain Technology (BT) to solve global supply chain problems especially in smart contracts with their potential applications. BT is in its early period and it is hard to find supply chains that have successfully implemented this technology to track their sustainable actions. Therefore, it is worth studying about the role of customers, members, domestic, national, and international challenges that could resist implementing Blockchain and may affect SC sustainability. Accordingly, four categories of barriers to the use of BT are introduced which are inter-organizational, intra-organizational, technical, and external barriers. Then with Bayesian Best Worst Method, we ranked the BT barriers and the sub-barriers. The study illustrates the interconnection of these barriers and the priority of each element. The lack of business models and the best practices in implementing Blockchain technology is a challenge and it is important that practitioners acknowledge these barriers in the first steps.
Niloofar Etemadi, Pieter van Gelder, Fernanda Strozzi
Over the last few years, the increasing level of cyber risks derived from the growing connectedness of Industry 4.0 has led to the emergence of blockchain technology as a major innovation in supply chain cybersecurity. The main purpose of this study is to identify and rank the significant barriers affecting the implementation of blockchain technology as a key component of cyber supply chain risk management (CSCRM). This research relied on the “interpretive structural modeling (ISM)” technique in the structure of a hierarchical model to investigate the contextual relationships of identified challenges for blockchain adoption in CSCRM; it also classifies the influential challenges based on their driving and dependence powers. The results highlight that “cryptocurrency volatility” is the challenge at the top level of the hierarchy, implying weak driving power but it is strongly dependent on the other challenges. “Poor regulatory provisions”, “technology immaturity”, “dependent on input information from external oracles”, “scalability and bandwidth issues”, and “smart contract issues” are significant challenges for the adoption of blockchain in cyber supply chain risk management and are located at the bottom level of the hierarchy with higher driving power. The implications for theory and practice of the research are also highlighted.
This work assesses the impact of blockchain and smart contract on the visibility of construction supply chain and in the context of payments (intersection of cash and product flows). It uses comparative empirical experiments (Charrette Test Method) to draw comparisons between the visibility of state-of-practice and blockchain-enabled payment systems in a commercial construction project. Comparisons were drawn across four levels of granularity. The findings are twofold: 1) blockchain improved information completeness and information accuracy respectively by an average 216% and 261% compared with the digital state-of-practice solution. The improvements were significantly more pronounced for inquiries that had higher product, trade, and temporal granularity; 2) blockchain-enabled solution was robust in the face of increased granularity, while the conventional solution experienced 50% and 66.7% decline respectively in completeness and accuracy of information. The paper concludes with a discussion of mechanisms contributing to visibility and technology adoption based on business objectives.
Few countries are deploying a blockchain technology for their military supply chain management. Blockchain implementation shows a positive impact on a Military Supply Chain Management (MSCM). The existing military blockchain is adopting a private blockchain setting due to sensitivity level of military data. However, the private blockchain allows non-military authorities’ involvement. This research is focusing on the secondary data analysis. This paper proposes a new consortium military blockchain for defense shipment. Blockchain layers are introduced to accommodate military authorities and suppliers. Further research in this area may strengthen the traceability and tracking features in the military logistics including military asset shipment and life cycles
This research focuses on analyzing the state of the art of the blockchain technology and in publicizing the potential applications and implementations that the blockchain can deliver to the supply chain. For this, it will be explained in a simple way technology and its operation in the supply chain and case studies of real companies that are currently betting on this technological revolution, capable of improving the efficiency of any process logistic.
Wolfram Groschopf, Mario Dobrovnik, Christian Herneth
Current research on smart contracts focuses on technical, conceptual, and legal aspects but neglects organizational requirements and sustainability impacts. We consider this a significant research gap and explore the relationship between smart contracts and sustainability in supply chains. First, we define the concept of smart contracts in terms of supply chain management. Then, we conduct a content analysis of the literature to explore the overlapping research fields of smart contracts and sustainability in supply chains. Next, we develop a semi-structured assessment framework to model the potential environmental and social impacts induced by smart contracts on supply chains. We propose a conceptual framework for supply chain maturity by mapping the relationships between organizational development, sustainability, and technology. We identify smart contracts as a foundational technology that enables efficient and transparent governance and collaborative self-coordination of human and non-human actors. Thus, we argue that smart contracts can contribute to the economic and social development of networked value chains and Society 5.0. To stimulate interdisciplinary research on smart contracts, we conclude the article by formulating research propositions and trade-offs for smart contracts in the context of technology development, business process and supply chain management, and sustainability.
Airline disruption management traditionally seeks to address three problem dimensions: aircraft scheduling, crew scheduling, and passenger scheduling, in that order. However, current efforts have, at most, only addressed the first two problem dimensions concurrently and do not account for the propagative effects that uncertain scheduling outcomes in one dimension can have on another dimension. In addition, existing approaches for airline disruption management include human specialists who decide on necessary corrective actions for airline schedule disruptions on the day of operation. However, human specialists are limited in their ability to process copious amounts of information imperative for making robust decisions that simultaneously address all problem dimensions during disruption management. Therefore, there is a need to augment the decision-making capabilities of a human specialist with quantitative and qualitative tools that can rationalize complex interactions amongst all dimensions in airline disruption management, and provide objective insights to the specialists in the airline operations control center. To that effect, we provide a discussion and demonstration of an agnostic and systematic paradigm for enabling expeditious simultaneously-integrated recovery of all problem dimensions during airline disruption management, through an intelligent multi-agent system that employs principles from artificial intelligence and distributed ledger technology. Results indicate that our paradigm for simultaneously-integrated recovery executes in polynomial time and is effective when all the flights in the airline route network are disrupted.
Open access
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cs.AI
cs.NE
Infrastructure Resilience and Vulnerability Analysis
Suprateek Sarker, Stefan Henningsson, Thomas Wiben Jensen, Jonas Hedman
Corruption is one of the most troubling societal challenges facing businesses today. Businesses have been combating corruption in fragmented ways, sometimes by creating anti-corruption policies applicable to certain stakeholders and, at other times, by harnessing digital technologies. Recently, the power of blockchain, with its capacity to provide full transactional disclosure and thereby reduce uncertainty, insecurity, and ambiguity in transactions, has been touted as being a game changer in the fight against corruption. Based on a study of the global shipping industry, we find that blockchain mitigates both process and document-related corruption. Based on these findings, we develop an understanding of how corruption may be combated using both social and digital/informational resources, including blockchain technology. Our model, drawing on past work on corruption, shows the complex interplay between identity, institutional actors, technical and other resources, and practices, and we develop conditions that could be effective in fighting corruption by using technologies such as blockchain.
A claim can be understood as a negative result of the performance of a contract, as it is necessary to fulfill the obligation and/or indemnify (freight damage claim, for example). Today’s claims management faces a variety of problems, such as inefficient claims postings, possible data forgery, and a very lengthy claims resolution process. All these problems can be solved by using a synthesis of innovative tools, e.g., a blockchain system, game theory, and statistical methods. Theoretical possibilities and practical examples regarding solving claims management problems were identified by analyzing various scientific sources. However, it remained unclear whether these methods could interact with each other, complicate the existing claims settlement process or not, or whether a synthesis of such measures would be viable. Therefore, a qualitative study was conducted and answers to the above questions were found. The research revealed that 75% of international Lithuanian logistics companies can apply the synthesis of these methods in claims management and solutions. Using the concordance coefficient formula, the value of W was calculated. This coefficient indicated that the opinions of the experts who participated in the study were somewhat similar. The value of the actual χ2 distribution was also calculated. The result obtained shows that the experts’ opinions were somewhat harmonized and that their compatibility was not accidental. The use of blockchain system synthesis in combination with game theory and statistical methods could help international logistics companies to reduce their costs, speed up the management process, and increase data security and reliability while ensuring structured one-stop claims management.
As the world is striving to recover from the shockwaves triggered by the COVID-19 crisis, all hands are needed on deck to transition towards green recovery and make peace with nature as prerequisites of a global sustainable development pathway. In this paper, we examine the blockchain hype, the gaps in the knowledge, and the tools needed to build promising use cases for blockchain technology to accelerate global efforts in this decade of action towards achieving the SDGs. We attempt to break the “hype cycle” portraying blockchain’s superiority by navigating a rational blockchain use case development approach. By prototyping an SDG Acceleration Scorecard to use blockchain-enabled solutions as SDG accelerators, we aim to provide useful insights towards developing an integrated approach that is fit-for-purpose to guide organizations and practitioners in their quest to make informed decisions to design and implement blockchain-backed solutions as SDG accelerators. Acknowledging the limitations in prototyping such tools, we believe these are minimally viable products and should be considered as living tools that can further evolve as the blockchain technology matures, its pace of adoption increases, lessons are learned, and good practices and standards are widely shared and internalized by teams and organizations working on innovation for development.
Supply chains (SC) present performance bottlenecks that contribute to a high level of costs, infiltration of product quality, and impact productivity. Examples of such inhibitors include the bullwhip effect, new product lines, high inventory, and restrictive data flows. These bottlenecks can force manufacturers to source more raw materials and increase production significantly. Also, restrictive data flow in a complex global SC network generally slows down the movement of goods and services. The use of distributed ledger technologies (DLT) in SC management (SCM) demonstrates the potentials to reduce these bottlenecks through transparency, decentralization, and optimizations in data management. These technologies promise to enhance the trustworthiness of entities within the SC, ensure the accuracy of data-driven operations, and enable existing SCM processes to migrate from a linear to a fully circular economy. This article presents a comprehensive review of 111 articles published in the public domain in the use and efficacy of DLT in SC. It acts as a roadmap for current and future researchers who focus on SC security management to better understand the integration of digital technologies such as DLT. We clustered these articles using standard descriptors linked to trustworthiness, namely, immutability, transparency, traceability, and integrity.
Niloofar Etemadi, Yari Borbon-Galvez, Fernanda Strozzi, Tahereh Etemadi
The purpose of this review is to describe the landscape of scientific literature enriched by an author’s keyword analysis to develop and test blockchain’s capabilities for enhancing supply chain resilience in times of increased risk and uncertainty. This review adopts a dynamic quantitative bibliometric method called systematic literature network analysis (SLNA) to extract and analyze the papers. The procedure consists of two methods: a systematic literature review (SLR) and bibliometric network analysis (BNA). This paper provides an important contribution to the literature in applying blockchain as a key component of cyber supply chain risk management (CSRM), manage and predict disruption risks that lead to resilience and robustness of the supply chain. This systematic review also sheds light on different research areas such as the potential of blockchain for privacy and security challenges, security of smart contracts, monitoring counterfeiting, and traceability database systems to ensure food safety and security.
Improving supply chain sustainability is an essential part of achieving the UN’s sustainable goals. Digitalization, such as blockchain technology, shows the potential to reshape supply chain management. Using distributed ledger technology, the blockchain platform provides a digital system and database to record the transactions along the supply chain. This decentralized database of transactions brings transparency, reliability, traceability, and efficiency to the supply chain management. This paper focuses on such novel blockchain-based supply chain management and its sustainability performances in the areas of environmental protection, social equity, and governance efficiency. Using a systematic literature review and two case studies, we evaluate whether the three sustainability indicators can be improved indirectly along supply chains based on blockchain technology. Our study shows that blockchain technology has the potential to improve supply chain sustainability performance, and we expect blockchain technology to rise in popularity in supply chain management.
The supply chain is a thriving industry where numerous parties have different interests. Subsequently, the immense volume of data produced is difficult to audit. Some information can be lost or intentionally distorted in the process. Blockchain as an open, public, borderless, neutral, and censorship-resistant architecture can significantly complement supply chains. A new supply chain architecture is proposed in this work, where the tokenized directed acyclic hypergraph (DAG) represents real-world production processes. An anti-aerosol respirator manufacturing is used as an illustration example. By tokenizing all parts of multi-component products, supply chain data is automatically timestamped and secured. Moreover, the DAG design allows one to trace-back all the elements of the final product to their origin. Blockchain can formally audit the entire supply chain without the need to go from place to place. A single incorruptible operations log creates an enabling environment for an unbiased reputation system to emerge.