Mario Dobrovnik, David M. Herold, Elmar FĂźrst, Sebastian Kummer
Despite the claim that blockchain will revolutionise business and redefine logistics, existing research so far is limited concerning frameworks that categorise blockchain application potentials and their implications. In particular, academic literature in transport and logistics to date has not sufficiently distinguished between blockchain adoption (âwhat to adoptâ) and the identification of the right business opportunity (âwhere to startâ). In response, this paper (1) uses Rogersâ (2003) âattributes of innovation frameworkâ to identify potential blockchain applications and (2) presents a framework explicating four transformation phases to subsequently categorise the identified areas of application according to their effects on organisational structures and processes. Using academic and practitioner literature, we classify possible applications for adoption and provide a framework to identify blockchain opportunities in the logistics industry, thereby helping managers to systematically assess where to start building organisational capabilities in order to successfully adopt and deploy blockchain-based technology.
A Supply Chain Finance (SCF) system involving and a commercial bank and a capital-constrained retailer is designed in the imperfect capital market with non-zero bankruptcy costs. A decentralized borrower-lender game is analyzed, and the optimal centralized strategy is developed for SCF from the perspective of multi-attribute utility (MAU) maximization, including maximizing the expected profit and the service level, as well as minimizing the bankruptcy cost. Furthermore, we analytically and numerically explore the coordination condition for SCF and conclude that the bank financing scheme with a suitable combination of decision preferences can realize coordination, even super coordination. Through sensitivity analyses and numerical experiments, we discuss the impacts of the borrower's initial capitals on the upstream firm's pricing decision and dig out why he has incentives to support the retailer's choice of adopting SCF. The findings of this study reveal that the capital-constrained retailer would require more initial capital when maximizing MAU than maximizing the expected profit, and thus the equilibrium order quantity and the bankruptcy risk would also be higher. Moreover, based on a suitable combination of decision preferences, our proposed bank financing scheme can realize coordination, even super coordination.
Blockchain has many benefits including decentralization, availability, persistency, consistency, anonymity, auditability and accountability, and it also covers a wide spectrum of applications ranging from cryptocurrency, financial services, reputation system, Internet of Things, sharing economy to public and social services. Not only may blockchain be regarded as a by-product of Bitcoin cryptocurrency systems, but also it is a type of distributed ledger technology through using a trustworthy, decentralized log of totally ordered transactions. By summarizing the literature of blockchain, it is found that more papers focus on engineering implementation and realization, while little work has been done on basic theory, for example, mathematical models (Markov processes, queueing theory and game models), performance analysis and optimization of blockchain systems. In this paper, we develop queueing theory of blockchain systems and provide system performance evaluation. To do this, we design a Markovian batch-service queueing system with two different service stages, while the two stages are suitable to well express the mining process in the miners pool and the building of a new blockchain. By using the matrix-geometric solution, we obtain a system stable condition and express three key performance measures: (a) The number of transactions in the queue, (b) the number of transactions in a block, and (c) the transaction-confirmation time. Finally, We use numerical examples to verify computability of our theoretical results. Although our queueing model is simple under exponential or Poisson assumptions, our analytic method will open a series of potentially promising research in queueing theory of blockchain systems.
Capital constraints exist in many supply chains. We examine a low carbon distribution channel that consists of a manufacturer and a retailer, in which the retailer is constrained by capital. The retailer can be financed by bank credit from a competitive bank market. A Stackelberg model is developed to analyze the integrated decision-making process of ordering, financing, and emission reduction. By comparing the decentralized and centralized channels, we obtain that the manufacturerâs green technology investment should be linearly proportional to the retailerâs order quantity in both channels. Thus, a large order quantity leads to increased efforts to reduce emissions. Results further show that the centralized channel in some cases has fewer emissions and can generate more profits for the whole supply chain compared with the decentralized channel. We therefore propose a revenue sharing contract with a function form to coordinate the distribution channel. When the government allocates appropriate quotas to the supply chain, high carbon price can benefit the environment and supply chain efficiency.
In a country like Ghana where Tilapia is the most preferred and cheapest source of animal protein, closer attention must be paid to the supply chain of such a product. This paper examines the major issues and problems in Tilapia supply chain and logistics in Ghana, and it suggests the intervention of the new and disruptive technology of blockchain. Blockchain technology can have the potential to revolutionize the supply chain of Tilapia in Ghana and bring many advantages to the flow of Tilapia from farmers till the end consumers. Besides, it highlights the role of blockchain in ensuring food safety and in rebuilding a trustful network of Tilapia distribution between producers and customers. A model of Tilapia supply chain based on blockchain technology will be exhibited and explained to provide relative solutions to supply chain management processes of Tilapia.
Jen-Hung Tseng, Yen-Chih Liao, Bin Chong, Shih-Wei Liao
As a trust machine, blockchain was recently introduced to the public to provide an immutable, consensus based and transparent system in the Fintech field. However, there are ongoing efforts to apply blockchain to other fields where trust and value are essential. In this paper, we suggest Gcoin blockchain as the base of the data flow of drugs to create transparent drug transaction data. Additionally, the regulation model of the drug supply chain could be altered from the inspection and examination only model to the surveillance net model, and every unit that is involved in the drug supply chain would be able to participate simultaneously to prevent counterfeit drugs and to protect public health, including patients.
Open-access blockchains based on proof-of-work protocols have gained tremendous popularity for their capabilities of providing decentralized tamper-proof ledgers and platforms for data-driven autonomous organization. Nevertheless, the proof-of-work based consensus protocols are vulnerable to cyber-attacks such as double-spending. In this paper, we propose a novel approach of cyber risk management for blockchain-based service. In particular, we adopt the cyber-insurance as an economic tool for neutralizing cyber risks due to attacks in blockchain networks. We consider a blockchain service market, which is composed of the infrastructure provider, the blockchain provider, the cyber-insurer, and the users. The blockchain provider purchases from the infrastructure provider, e.g., a cloud, the computing resources to maintain the blockchain consensus, and then offers blockchain services to the users. The blockchain provider strategizes its investment in the infrastructure and the service price charged to the users, in order to improve the security of the blockchain and thus optimize its profit. Meanwhile, the blockchain provider also purchases a cyber-insurance from the cyber-insurer to protect itself from the potential damage due to the attacks. In return, the cyber-insurer adjusts the insurance premium according to the perceived risk level of the blockchain service. Based on the assumption of rationality for the market entities, we model the interaction among the blockchain provider, the users, and the cyber-insurer as a two-level Stackelberg game. Namely, the blockchain provider and the cyber-insurer lead to set their pricing/investment strategies, and then the users follow to determine their demand of the blockchain service. Specifically, we consider the scenario of double-spending attacks and provide a series of analytical results about the Stackelberg equilibrium in the market game.
Maged M. Eljazzar, Mohamed Amr, Sally Kassem, Mohamed Ezzat
Technology has been playing a major role in our lives. One definition for technology is all the knowledge, products, processes, tools,methods and systems employed in the creation of goods or in providing services.This makes technological innovations raise the competitiveness between organizations that depend on supply chain and logistics in the global market. With increasing competitiveness, new challenges arise due to lack of information and assets tractability. This paper introduces three scenarios for solving these challenges using the Blockchain technology. In this work, Blockchain technology targets two main issues within the supply chain, namely, data transparency and resource sharing. These issues are reflected into the organizations strategies and plans.
Blockchain technology, popularized by Bitcoin cryptocurrency, is characterized as an open-source, decentralized, distributed database for storing transaction information. Rather than relying on centralized intermediaries (e.g., banks) this technology allows two parties to transact directly using duplicate, linked ledgers called blockchains. This makes transactions considerably more transparent than those provided by centralized systems. As a result, transactions are executed without relying on explicit trust [of a third party], but on the distributed trust based on the consensus of the network (i.e., other blockchain users). Applying this technology to improve supply chain transparency has many possibilities. Every product has a long and storied history. However, much of this history is presently obscured. Often, when negative practices are exposed, they quickly escalate to scandalous, and financially crippling proportions. There are many recent examples, such as the exposure of child labor upstream in the manufacturing process and the unethical use of rainforest resources. Blockchain may bring supply chain transparency to a new level, but presently academic and managerial adoption of blockchain technologies is limited by our understanding. To address this issue, this research uses the Unified Theory of Acceptance and Use of Technology (UTAUT) and the concept of technology innovation adoption as a foundational framework for supply chain traceability. A conceptual model is developed and the research culminates with supply chain implications of blockchain that are inspired by theory and literature review.
Jan 1, 2018¡Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Due to the disruptive role of the Bitcoin in the financial sector, both scholars and practitioners are increasingly wondering whether it is possible to replicate the impact of the Blockchain technology in the supply chain context. As a distributed ledger technology characterized by the decentralized consensus, Blockchain is touted by many as the proper platform to collect all the information about supply chains from the producer to the consumer. However, the current technology immaturity and the lack of successful supply chain implementations pave the way for doubt about the disruptive role of this technology in supply chains. To the authorsâ knowledge, this work is one of the very first attempts to link the blockchain technology to supply chain and logistics. This paper investigates the state-of-the-art application of blockchain in supply chains, exploring both the literature and the industry initiatives, contributing to the increase of the managerial insight and providing a future research agenda.
Youness Tribis, Abdelali El Bouchti, Houssine Bouayad
Groundbreakingly, blockchain technology (BCT) has gained widespread acceptance and importance in the last few years. Implemented in different areas of applications such as social and legal industries, finance, smart property, and supply chain networks. This technology assures immutability and integrity of data without the need of a third trusted party. Furthermore, BCT could guarantee a transparent and decentralized transaction system in businesses and industries. Even though general research has been done in the BCT, however, there is a lack of systematic analysis on current research challenges regarding how BCT is effectively applicable in supply chain management (SCM). A systematic literature review (SLR) of SCM based on blockchain does not exist yet. This work aims to explore and analyse the state-ofthe-art on the BCT applications for SCM. We synthesize existing evidence, and identify gaps, available in the literature. The survey uses a systematic mapping study (SMS) method to examine 40 extracted primary studies from scientific databases.
Blockchain is a form of distributed ledger technology (DLT) that has grown in prominence, although its full potential and possible downsides are not yet fully understood, especially with respect to Operations Management (OM). This manuscript contributes to filling in this gap. We identify three research themes in applying Blockchain technology to OM, illustrated through several applications to OM problems. Elsewhere, in a companion article, (Babich and Hilary (2018)), we provide a conceptual framework for the role of Blockchain and other DLT in OM, along with specific examples of research questions, and we demonstrate how research in economics can inform research in OM on Blockchain applications. Finally, we discuss possible future uses for the technology.
Roberto CasadoâVara, Javier Prieto, Fernando De la Prieta, Juan M. Corchado
Current supply chain is a linear economy model that directly or indirectly fulfills supply needs. But this model has some disadvantages, such as the relationships between the members of the supply chain or the lack of information for the consumer about the origin of the products. In this paper we propose a new model of supply chain via blockchain. This new model enables the concept of circular economy and eliminates many of the disadvantages of the current supply chain. In order to coordinate all the transactions that take place in the supply chain a multi-agent system is created for this paper.
The Blockchain technology can be defined as a distributed ledger database for recording transactions between parties verifiably and permanently. Blockchain emerged as a leading technology layer for financial applications. Nevertheless, in the past years, the attention of researchers and practitioners moved to the application of the Blockchain technologies to other domains. Recently, it represents the backbone of a new digital supply chain. Thanks to its capability of ensuring data immutability and public accessibility of data streams, Blockchain can increase the efficiency, reliability, and transparency of the overall supply chain, and optimize the inbound processes. The literature concerning Blockchain in non-financial applications mainly focused on the technological part and the Business Process Modeling, lacking in terms of standard methodology for designing a strategy to develop and validate the overall Blockchain solution and integrate it in the Business Strategy. Thus, this paper aims to overcome this lack. First, we integrate the current literature filling the lack concerning the digital strategy, creating a standard methodology to design Blockchain technology use cases, which are not related to finance applications. Second, we present the results of a use case in the fresh food delivery, showing the critical aspects of implementing a Blockchain solution. Moreover, the paper discusses how the Blockchain will help in reducing the logistics costs and in optimizing the operations and the research challenges.
Hubert Pun, Jayashankar M. Swaminathan, Pengwen Hou
Counterfeiting is a severe problem in many sectors. There are two types of counterfeits: nonâdeceptive and deceptive. While both types are important business challenge, deceptive counterfeit has an additional negative impactâcustomers have a postâpurchase regret if they expect to purchase a real product but ended up with a fake. The focus of this study is on the setting that relates to deceptive counterfeits. Our paper is one of the first that examines the effectiveness of blockchain as a solution to a supply chain challenge. Specifically, the unique feature of blockchain that we model, which none of the traditional strategies studied in the literature is capable of, is that blockchain adoption changes the analysis from a deceptive counterfeit setting to a nonâdeceptive counterfeit setting. We also consider government being a decision maker and customers' privacy concern from blockchain adoption, two features that are not examined in the existing literature. We consider a market with a manufacturer and a deceptive counterfeiter. The manufacturer can signal product authenticity either with blockchain technology or through pricing. The government can provide subsidy to encourage blockchain adoption. Blockchain should be used when the counterfeit quality is intermediate or when customers have intermediate distrust about products in the market. If government provides subsidy, blockchain can be more effective than differential pricing strategy in eliminating postâpurchase regret. Our results advocate for government providing subsidy because it benefits both customers and the society and could be a better approach than government enforcement efforts.
Purpose This paper aims to strive to close the current research gap pertaining to potential implications of the blockchain for supply chain management (SCM) by presenting a framework built on four established economic theories, namely, principal agent theory (PAT), transaction cost analysis (TCA), resource-based view (RBV) and network theory (NT). These theories can be used to derive research questions that are theory-based as well as relevant for the industry. This paper is intended to initiate and stimulate an academic discussion on the potential impact of the blockchain and introduces a framework for middle-range theorizing together with several research questions. Design/methodology/approach This paper builds on previous theories that are frequently used in SCM research and shows how they can be adapted to blockchain-related questions. Findings This paper introduces a framework for middle-range theorizing together with several research questions. Research limitations/implications The paper presents blockchain-related research questions derived from four frequently used theories, namely, PAT, TCA, RBV and (NT). These questions will guide future research pertaining to structural (PAT, TCA) and managerial issues (RBV, NT) and will foster middle-range theory development in SCM research. Practical implications Blockchain technology has the potential to significantly change SCM. Given the huge investments by industry, academic research is needed which investigates potential implications and supports companies. In this paper, various research questions are introduced that illustrate how the implications of blockchain on SCM can be investigated from different perspectives. Originality/value To the best of the authorâs knowledge, no academic papers are published in leading academic journals that investigate the relationship between SCM and blockchain from a theory-based perspective.
Blockchain is an emergent technology concept that enables the decentralized and immutable storage of verified data. Over the last few years, it has increasingly attracted the attention of different industries. Especially in Fintech, Blockchain is hyped as the silver bullet that might overthrow todayâs payment handling. Slowly, the logistics and supply chain management community realizes how profoundly Blockchain could affect their industry. To shed light on this emerging field, we conducted an online survey and asked logistics professionals for their opinion on use case exemplars, barriers, facilitators, and the general prospects of Blockchain in logistics and supply chain management. We found most of our participants are fairly positive about this new technology and the benefits it offers. However, factors like the hierarchical level, Blockchain experiences, and the industry sector have a significant impact on the participantsâ evaluation. We reason that the benefits over existing IT solutions must be carved out more carefully and use cases must be further explored to get a rather conservative industry, like logistics, more excited about Blockchain.
Vinay Reddy Mallidi, V. Madhu Viswanatham, P. Ashok Kumar
For the past few years, the market has changed a lot and it has become dynamic and demanding which has put the market into a competitive environment. The supply chain plays a crucial role to adapt the business to the dynamic environment as it is very reliant on collaboration integration as well as flexibility. The applications related to the supply chain have gotten the attention of many business owners and to improve the flow control of the supply chain many specialized applications are implemented. One of the most important new technological applications in the supply chain is blockchain technology which has garnered the attention of many business owners as it can be quickly adapted to dynamic market conditions and in the business environment. One upon reading this will get to know about the effect of blockchain technology utilization on this field. The results of the research paper recommend that companies invest in blockchain technology so that the supply chain becomes more transparent, flexible, and secure. There is no doubt in the fact that blockchain technology plays an important role in developing trust with the stakeholder of the supply chain. In the end, the research paper has also given some considerations on the implications that are positive as well as the potential of the blockchain in the field of collaboration and integration.