Fernando Parahyba, Eldair F. Dornelles, Fabrícia Roos-Frantz, Rafael Z. Frantz · 8 authors
Integration processes involve Business Constraints and Service Level Agreements that, with current technology, are not monitored or enforced automatically at run-time. This approach leaves the participants with no means of supervising the development of their interactions or of collecting indisputable evidence to ease the resolution of disputes that can potentially emerge. In this paper, to address the issue, we suggest the inclusion of smart contracts in integration processes to supervise and mediate, at run-time, the agreements to which the participants commit. We discuss the requirements that smart contracts for integration processes need to meet and the challenges involved in writing, executing, deploying, and verifying them.
A logistics service integrator (LSI) usually requires a logistics service provider (LSP) to carry out smart transformation in order to improve the level of logistics service. However, LSP’s smart transformation faces uncertainty in terms of investments and income, which seriously hinders LSP’s enthusiasm for logistics service innovation. In this paper, we construct a logistics service supply chain (LSSC) consisting of an LSI and an LSP to explore the incentive mechanism for LSPs to undergo smart transformation. As a benchmark for comparison, we first obtain the equilibrium results under centralized decision making and wholesale price (WP) contracts. Then, cost-sharing (CS), revenue-sharing (RS), and cost sharing–revenue sharing (CS-RS) hybrid contracts are proposed. It is found that when the CS coefficient is in a certain interval, the CS contract can increase the profit of LSI and the smart level of logistics service, but it will decrease the profit of LSP. With the exception that the wholesale price of logistics services will decrease, the equilibrium results under the RS contract and WP contract remain consistent. Only the CS-RS hybrid contract can achieve the perfect coordination of LSSC. In addition, by conducting numerical analysis, we find that the enhancement of the smart effect can encourage LSP to improve the smart level and increase the overall revenue of LSSC. To the best of our knowledge, this paper is the first study to explore the incentive mechanism between LSI and LSP in the context of logistics service smart transformation. Our findings guide the LSI in implementing an effective contract.
Khoi Le Quoc, Phuc Nguyen Trong, Hieu Le Van, Hong Khanh Vo · 13 authors
The exchange of goods between countries is growing, contributing to the promotion of logistics-related technologies. More and more systems are adopting advances in science and engineering to reduce manual handling steps, thereby reducing transit time. Letter-of-Credit (LOC) is a standard method where the parties involved will enter into agreements for the sale and exchange of goods. Specifically, each party will receive a set of original documents and does not need to meet face-to-face under the bank’s witness. The process brings many benefits in terms of time and reduces records processing. However, the system faces a lot of risks when one of the parties is dishonest. On the other hand, the traditional LOC systems face a lot of risks related to the transparency of information about the goods, and also the supplier may lose the goods (e.g., 4/100 Vietnamese cashew nut containers are lost. stuck in Italy) or deposits in the hands of shipping companies (e.g., GNN Express - Vietnam) and many more. To this end, many research directions have exploited blockchain technology and smart contracts. Specifically, all information related to the transaction between the supplier and the demander including package, time, and delivery location. However, there needs to be a mechanism to ensure the smooth implementation of smart contracts, specifically for sanctioning when there is a conflict between a supplier and a demander. This role should be considered for the transaction manager, who directly designs and is responsible for their smart contracts. Currently, there is no mechanism to guarantee all interests of the parties involved in non-bank transactions. To increase the processing capacity and integrate with the Blockchain system, we propose the Letter-of-credit Chain that defines the agreements between the parties in international trade. We also deploy the proof-of-concept of the Letter-of-credit Chain on the three EVM-supported platforms (i.e., under ERC20), namely, Ethereum, Binance Smart Chain, and Fantom. By evaluating the actual execution of Gas for each platform, we found that our proposed model had the cheapest fee when deployed on the Fantom platform. Finally, we share the deployment/implementation of these platforms’ proof-of-concept to encourage further future research.
In the literature on relational governance, it is often assumed that relational governance emerges primarily after formal contracting and acts as a functional supplement to a formal contract. In this article, we show that especially facing deep uncertainties, relational governance can emerge before the start of formal partnerships, in the form of trust-building, exchanging resources, and fostering flexibility. Based on a case study of a smart city outsourcing project, this article introduces a forward-extended framework of relational governance that captures the pre-contractual dimensions of relationship cultivation and their role in facilitating formal contracting. The study finds that pre-contractual relational governance facilitates formal contracting by reducing substantive, evaluative, technological, and procedural uncertainties in the project and helps the partners to design an elaborative contract, undergo an easy negotiation, adopt short-term contracts, and use simple monitoring and evaluation methods. The article thus argues that only understanding post-contractual relational governance is insufficient for exploring the relation between formal contracting and relational governance; facing deep uncertainties, it is necessary to understand how public and private parties develop their pre-contractual relationship and reduce the uncertainties before a formal contract can be signed. Points for practitioners Practitioners should realize that there is much room for relational governance in the pre-contractual phase of PPP projects when the projects are rife with various uncertainties. Public and private parties can take measures to build trust, foster flexibility, and create interdependence before a formal contract is signed. These ex-ante relational governance measures can facilitate formal contracting by reducing the various uncertainties, making a formal contract designable, making negotiation smooth and easy, and reducing the need for contract supervision.
Decentralized autonomous organizations are a new form of smart contract based governance. Decentralized autonomous organization platforms, which support the creation of such organizations, are becoming increasingly popular, such as Aragon and Colony. Selecting the best fitting platform is challenging for organizations, as a significant number of decision criteria, such as popularity, developer availability, governance issues, and consistent documentation of such platforms, should be considered. Additionally, decision-makers at the organizations are not experts in every domain, so they must continuously acquire volatile knowledge regarding such platforms. Supporting decision-makers in selecting the right decentralized autonomous organizations by designing an effective decision model is the main objective of this study. We aim to provide more insight into their selection process and reduce time and effort significantly by designing a decision model. This study presents a decision model for the decentralized autonomous organization platform selection problem. The decision model captures knowledge regarding such platforms and concepts systematically. The decision model is based on an existing theoretical framework that assists software engineers with a set of Multi-Criteria Decision-Making problems in software production. We conducted three industry case studies in the context of three decentralized autonomous organizations to evaluate the effectiveness and efficiency of the decision model in assisting decision-makers. The case study participants declared that the decision model provides significantly more insight into their selection process and reduces time and effort. We observe in the empirical evidence from the case studies that decision-makers can make more rational, efficient, and effective decisions with the decision model. Furthermore, the reusable form of captured knowledge regarding Decentralized Autonomous Organization Platforms can be employed by other researchers in their future investigations.
Maria A. Egorova, Luibov Andreeva, Владимир Андреев, Imeda A. Tsindeliani · 5 authors
Abstract Using the case study method, the study examines the prospects and initiatives of the state that can create preconditions for the formation of new areas of legal regulation in the field of digital public procurement as well as issues of improving the mechanisms of information systems, taking into account the specifics of states with a multi-structured economy. The objective of the study is to assess the applicability of the tools for digital transformation of the Russian Federation in the field of public procurement in the context of international practice. Confirming all the advantages of the idea of digital transformation of public procurement systems, the Russian experience is intended to demonstrate what problems at the level of legislative regulation the state policy associated with the implementation of such systems can face. In this case, in contrast to foreign practices, the Russian system of electronic public procurement in the aggregate creates a single information space that, in fact, has no direct analogues and is a special example of interaction between electronic platforms in this area. In addition, the example of introducing distributed ledger technology into such systems is significant from the point of view of the functioning of electronic public procurement platforms. The results of this study and the tools used to assess legal regulation in the field of public procurement can be used by state authorities of the Russian Federation, taking into account the needs of entrepreneurs, to better assess the feasibility and consequences of participation in public procurement procedures. This study’s results can also be of relevance to researchers of comparative legislation in the field of legal regulation of public procurement.
Firms apply new technology to value creation. In particular, blockchain technology increases transparency and stability of shipping and logistics firms and this is connected with a high level of collaboration with shippers. In this regard, the objective of this study is to verify the interaction effect of information systems of shipping and logistics firms and managers’ support for blockchain technology on cooperation with shippers. To achieve the objective, this study identified variables based on prior research and analyzed the data collected by a survey. The results are as follows. First, information systems as a resource of shipping and logistics firms have a positive effect on cooperation with shippers. To enhance the strategic resource, they increase cooperation with shippers based on learning and logistics process improvement. Therefore, the relationship between the information systems and cooperation with shippers can be explained as a resource-based view. Second, there is the interaction effect of the information systems and managers’ support for blockchain technology on the cooperation and this can be explained as a resource-based view. Information systems are resources of shipping and logistics firms, and managers should encourage and reward staff for using new technology such as blockchains, followed by a high level of cooperation with shippers.
Muhammad Khan, Shoaib Imtiaz, Gohar Saleem Parvaiz, Arif Hussain · 5 authors
There has been incredible interest in Internet-of-Things (IoT) and blockchain technology (BCT) around the world and across sectors. Following great achievement in the other sectors, the implementation of IoT and BCT have gained great interest in Humanitarian Logistics (HL) at many levels despite remaining in an earlier stage. The profit and non-profit organizations both are under increasing worldwide pressure for transparency, with donors and governments calling for enhanced transparency and information exchange in the humanitarian sector. This study, which is based on transactive memory systems (TMS) theory perspectives, proposes a study framework to understand “how can the transparency, public trust, and coordination in HL be improved through the integration of IoT with BCT?”. We framed and tested six research hypotheses, using data collected from Humanitarian Organizations (HOs) employees. We have applied a Covariance-based structure equation model (CB-SEM) with confirmatory factor analysis (CFA). This study results confirm that our all hypotheses were supported. The research results show that the association between explanatory variables (i.e., IoT and BCT) and the response variables (i.e., public trust and coordination) is mediated by transparency. This study provides substantial and valid contributions to the literature on IoT, BCT, transparency, public trust and coordination. This study proves that transparency plays a crucial role in enhancing public trust, coordination, and ultimately HL performance through the integration of IoT with BCT. The study results could be helpful for all the stakeholders of disaster risk management since they are insistently looking for strategies to support afflicts. Our study is a good candidate solution to raise awareness of fast, fair, and safe HL to reveal research gaps and provide opportunities for future research. The study will provide an enormous understanding of IoT and BCT in HL, which has not been investigated empirically before.
Sulafa Badi, Edward G. Ochieng, Mohamed Nasaj, Maria Papadaki
This study aims to identify the factors that influence the adoption of smart contracts in the UK construction sector. A deductive questionnaire-based approach informed by the technology-organisation-environment (TOE) model is adopted. The framework is comprised of twelve independent variables and one dependent variable of smart contracts use intention. Ten hypotheses are developed to statistically test the causal relationships between the eleven variables of the research model. The study adopts a convenience sampling approach, with the population of interest being primarily drawn from among UK construction practitioners. The results generated from linear regression analysis suggest that the following four factors have a significant influence on the adoption of smart contracts: supply chain pressure, competitive pressure, top management support, and observability. The descriptive statistics obtained also offer a greater understanding of the perceptions and attitudes towards smart contracts across the UK construction sector. The results demonstrate the usefulness of a perception-based model that utilises the TOE framework to assess facets that influence the adoption of smart contracts. The study contributes to innovation diffusion studies in construction project management and supports “early adopters” at the footfall of the technology’s diffusion curve.
Christian F. Durach, Till Blesik, Maximilian von Düring, Markus Bick
Blockchains, a disruptive technology with potentially many applications in modern‐day supply chain (SC) transactions, have not been adequately reflected by theory. Researchers and business managers must understand where and when blockchains’ application may be expected and investigated. The present study clarifies the discussion about blockchain application areas (BAAs) in SC transactions and their relevance for businesses. This study combines the findings from three methodological approaches: an extant literature review, a Delphi study, and a survey of 151 German machinery and equipment sector business managers. The results further our understanding of blockchains’ business opportunities among SC transactions and verify and extend Iansiti and Lakhani’s ( Harvard Business Review 2017; 95: 118) blockchain adoption framework. Verified customer reviews and product quality certification are identified as the most relevant blockchain usages in SC transactions. Interestingly, we anticipate the least likely adoption of blockchains to occur for document‐signing processes despite arguments within the literature that suggest otherwise. Two newly identified BAAs—logistics and delivery systems—and token‐curated registries rank among the top four most relevant. The present study’s valuation of BAAs advances theory and will likely affect business strategies by indicating where, when, and why businesses should participate in blockchain networks.
Abstract Smart contracts are scripts on the top of the blockchain technology. They represent a form of automation by what the layers of intermediaries can be reduced or even completely replaced. Accordingly, blockchain smart contracting systems decrease transaction and enforcement costs as well as process time. Moreover, we argue, blockchain and smart contracts can facilitate cross-organisational collaboration and their underlying business processes. Hence, they are able to support the integration of entrepreneurs and SMEs into trans-national supply chains by reducing high entry barriers and weakening the dominating position of big players. This paper discusses the research questions how blockchain smart contracting can facilitate the implementation of collaborative logistics structures and how the integration of SMEs into sustainable maritime supply chains can be safeguarded. The research bases on expert interviews and case studies. The results showcase the potentials of using blockchain smart contracting in the environment of trans-national and multimodal supply chains.
Block chain is a decentralized infrastructure that is widely used in emerging digital cryptocurrencies and has received attention and research as Bitcoin has gradually become accepted. Block chain technology is the underlying technology of Bitcoin. Its decentralization, block data cannot be tampered with, and it is trusted, which makes its application in various fields gradually gaining attention. With the deepening of the phenomenon of globalization and division of labor, the supply chain of modern enterprises began to appear fragmentary, complex, decentralized, and other phenomena, which brought great challenges to the supply chain management. First of all, it gives a basic overview of the block chain technology, explains its composition, basic framework and technical characteristics, then analyzes the problems in the current supply chain management, and finally points out that the block chain technology solves the above-mentioned supply chain management problems. The purpose is to help the block chain technology in the field of supply chain related research.
Michael D. Santonino, Constantine M. Koursaris, Michael Williams
Radio Frequency Identification, or RFID, has been gaining momentum within the aviation industry for improving efficiencies in the supply chain. RFID technology is not new, with many manufacturers outside of aviation being more responsive as early adopters to the technology. Currently, many of the full-scale implementation organizations from late adopters, have strategically integrated RFID technology into the manufacturing supply chain to tag parts and for airports/airlines to track baggage and passengers throughout their airport journey. Literature remains rather sparse in the implementation and success factors within the aviation supply chain as a number of businesses have kept much of the details discreet to differentiate themselves from the competitors. In this case study, we have examined the state of the early adopters in aviation to implement RFID technology into their supply chain for tracking parts, identifying information, logistics media, and other process improvements in component maintenance management. Airbus, who was the first in the aviation industry to adopt RFID will be examined. The paper examines the increasing numbers of airports/airlines use of RFID to track baggage and passengers with technology. Using information from published secondary data, we review the early adopters of RFID in aircraft manufacturing who are employing RFID to the improve supply chain and how airports/airlines usage of RFID has transcend to passenger tracking to improve airport operational efficiency and to increase passenger satisfaction. By identifying key trends in the aviation supply chain and the value-added in manufacturing and passenger experiences, this paper presents areas in need of further empirical research in order to understand the key success factors with RFID implementation in aviation.
Global maritime logistics generates annual revenues upwards of two trillion dollars, more than one-fifth of which is earned by freight forwarders and other intermediaries facilitating the trade. Multiple entities in the supply chain, with their disjointed and often incompatible administrative procedures, outdated paperwork practices, and competing interests, add a great deal to the cost and time for exporters and importers. This study examines the feasibility of a blockchain-based approach to enhancing transparency, efficiency, and economy of the global maritime logistics and finds the approach much promising. A proof-of-concept Web client application, built using Linux Foundation's Hyperledger Sawtooth framework, is used to describe the functionality of a potential maritime logistics blockchain.
Implementing smart contracts to automate the performance of high-value over-the-counter (OTC) financial derivatives is a formidable challenge. Due to the regulatory framework and the scale of financial risk if a contract were to go wrong, the performance of these contracts must be enforceable in law and there is an absolute requirement that the smart contract will be faithful to the intentions of the parties as expressed in the original legal documentation. Formal methods provide an attractive route for validation and assurance, and here we present early results from an investigation of the semantics of industry-standard legal documentation for OTC derivatives. We explain the need for a formal representation that combines temporal, deontic and operational aspects, and focus on the requirements for the temporal aspects as derived from the legal text. The relevance of this work extends beyond OTC derivatives and is applicable to understanding the temporal semantics of a wide range of legal documentation.
Abstract The smart partnership framework introduced in this article is derived from extensive, on-site interviews with nonprofit and public contract managers conducted in several grounded research projects between 2011 and 2015 and from the research literature on contracting. The framework demonstrates the continuing explanatory power of resource dependence theory that disentangles the formidable influence of the public policy environment on organizational action. It is intended to provide a coherent guide for practice by enabling nonprofit managers in the social services field to navigate the current intense environmental uncertainty in which cross-sector contracting relationships between government agencies and nonprofit organizations are embedded. By providing an accessible way to understand an extraordinarily complex set of inter-organizational dynamics, the model offers a research-based definition and clear visualization of what it means to be a smart partner. It highlights the necessity of understanding the norms, expectations, structures, processes, and culture within which sector counterpart contract managers operate. Fundamental to the range of managerial strategies that the framework calls for is the need explicitly to attend to relationship building, to patterns of variation in relationships over time, and to their probable consequences. The integrative model consists of three inter-related organizational competencies and a number of secondary competencies. Competency 1: understand the dynamic nature of contracting relationships; secondary competencies: recognize predictable variations in relationships; comprehend the importance of multiple institutional logics. Competency 2: develop and sustain capacity for strategic adaptation; secondary competencies: build external and internal learning capacity; discern power shifts in inter-organizational relationships; maintain capability for strategic repositioning. Competency 3: participate proactively in shaping policy change; secondary competencies: attend to relationship development and nurturance; build trust and credibility.
This paper gives an interpretation of the recent diffusion of the processes of productive outsourcing founded on two explanatory points. The first is that such processes replace a hierarchical paradigm of information diffusion with a decentralized paradigm in which independent subcontracting firms autonomously collect and process part or all of the prominent information. The second is constituted by the change of the modality of production innovation, becoming the result of autonomously developed inputs that are successively made complementary by the work of the network through an encapsulation process of the information. This is made possible by the fact that after an initial phase in which a new input is jointly projected by the contractor and the subcontractor and in which the information comes shared, a phase follows in which the prominent information for the specification of the characteristics of the product and for the solution of the local and unforeseen problems is collected and processed in a sequential manner and then encapsulated in the input by autonomous production units. In comparison with the vertical integration (make) or the market (buy), this form of governance (subcontract) allows for the organization in more efficient manner of the processing of the information, for the reduction of the informative costs and for the minimization of the risk of spillover.