Abstract We consider a situation in which two parties have concluded an efficient contract corresponding to one major bargaining solution. After the parties have agreed on one particular contract, an unanticipated shock may change the contract outcomes in a way that benefits one party but harms the other party. If this happens, they have the option to either stay with the original exchange contract or adjust some contract parameters such as the price. We propose a model to perform such adjustments automatically, to obtain the same bargaining solution as in the initial contract under the restriction that the new contract dominates the outcomes of the original contract. We study several bargaining solutions within this general framework. These bargaining solutions offer various sharing rules to distribute the benefit between the parties. To reflect practical considerations, we only consider adjustments made via one contract parameter (the price), while all other parameters result from the original contract and the random shock. To evaluate the efficiency of the proposed approach, we also compare it to a full re-negotiation scenario, in which all parameters can be modified within the boundaries resulting after the random shock. However, waiting and re-negotiation might be costly compared to the situation when the smart contract executes the adjustment automatically. Therefore, the automatic adjustment might be more efficient compared to the other types of contracts. We present several numerical examples and run large random simulations, which we also check statistically.
Technology adoption is vital for improving the efficiency of workflows across value chains. However, technology selection can be challenging, especially for multi-party workflows across different geographical boundaries. The chosen technologies must satisfy the requirements of the tasks at hand and align with international and local laws and regulations. Marine bunkering is a global industry comprising multiple stakeholders with diverse roles and responsibilities that must adhere to global standards and regulations. Through a single case study, we endeavor to understand the role of blockchain technology in marine bunkering, drawing on the Task-Technology Fit theory and Group Support System model to investigate this concept. Our analysis reveals that fit depends on underlying legal norms, task characteristics, and technological properties. Furthermore, we shed light on the blockchain framework used and the role of smart contracts in the value chain. Our research offers insights into an extended Task-Technology Fit theory where stakeholders in a value chain are distributed across multiple geographical boundaries.
Many e-commerce platforms, such as Amazon and JD.com, consider product information disclosure as a crucial retail strategy. However, due to potential consumer distrust in the disclosed information, these platforms may employ blockchain technology to validate the information and alleviate consumersâ doubts. This study presents a game-theoretical model to investigate the interaction among the manufacturerâs choice of selling mode, the platformâs decision regarding blockchain adoption, and information disclosure strategies in the presence of information asymmetry. Optimal pricing and information disclosure strategies are derived, and the impact of various parameters on the equilibrium results is analyzed. We find that the consumersâ privacy concerns and blockchain implementation costs both have negative effects on the equilibrium retail price, disclosed information amount and profits of the manufacturer and platform. Moreover, we also find that the introduction of blockchain has different effects on a platformâs pricing and information disclosure strategies depending on the market size. In addition, conditions are identified under which the manufacturer selects the optimal selling mode and the platform makes an optimal decision on blockchain adoption. The findings demonstrate that the cost of consumersâ privacy concerns and the commission rate play significant roles in determining the equilibrium selling mode selection and blockchain adoption strategies.
The application of blockchain and smart contracts has been widely acknowledged as essential in digitised logistics, offering improved traceability, transparency, and efficiency. However, concerns regarding performance and implementation limitations persist. To demonstrate the challenges regarding the performance and efficiency of blockchain in logistics use cases, this study presents a proof-of-concept model by leveraging the Hyperledger Fabric blockchain network to emulate the shipping logistics process and illustrate the automated and self-executing nature of smart contracts and transactions among various logistics participants by implementing RAFT consensus mechanism. Utilizing Hyperledger Caliper, this study evaluates the performance by systematically adjusting parameters including the number of clients, the number of concurrent transactions, and transaction rates per second. Then nuanced variations in latency, send rate, and throughput are examined. Preliminary findings indicate significant performance impacts related to client numbers and transaction rates per second. When exceeding the processing capacity, the average latency of transactions experiences an exponential increase due to limited resources. Furthermore, different types of operations are compared, with Read operations exhibiting the lowest latency and Update operations displaying the highest latency due to the complex computations and validations involved. Lastly, the latency measures of the LogisticChain network between fixed-rate and linear-rate controllers are compared, highlighting lower latency with fixed-rate controllers. This research contributes to the advancement of knowledge in this field by developing open-source codes specifically tailored for maritime logistics use cases.
YongâWu Zhou, Yu-shen Fu, Kunyu Wang, Jie Min · 5 authors
Abstract Consumers typically have a higher preference and trust for traceability products, which makes many online platforms (e.g., JD.com, Tmall Global) and food manufacturers (e.g., BeingMate, Mengniu, Moutai) use blockchainâenabled traceability to improve product transparency and trust. This paper systematically analyzes the effects of constructing blockchainâbased information traceability systems (BITS) on supply chains led by different members in a dualâchannel supply chain consisting of a manufacturer and an online platform. We studied the optimal operational strategy for dualâchannel members in two scenarios without blockchain technology and different members (i.e., manufacturer and online platform) as leaders in building BITS. We find that BITS adoption can effectively improve the performance of supply chain members, but the value added to blockchain depends on the level of consumer goodwill toward BITS, the level of competition, and the proportion of cost sharing. We show that either the manufacturer or the online platform can be more profitable as a leader in building BITS. Further, we showed that either the manufacturer or the online platform, as the leader of BITS construction, should bear more construction costs so that the nonleader builder can gain more profit to achieve a winâwin result. Interestingly, as the leader of BITS construction bearing more construction costs can achieve higher system total profit.
Abstract The emerging blockchainâsupported platforms (BSPs) become prevalent with higher product quality and guaranteed authenticity, making the competition between BSP and traditional sales channels (TSC) gain attention. To explore the optimal operation strategies for retailers in TSC and BSP, we develop the vertically differentiated model to describe the channel competition and derive optimal decisions for two retailers. Then, the BSP's comparative advantage and the value of blockchain technology are analyzed. Next, we examine how blockchain quality disclosure and network externalities affect channel competition, as well as the impact of government policies. We find that (i) a higher quality improvement in BSP will simultaneously increase both retail prices and retailersâ profit under some circumstances. Meanwhile, the counterfeit sold in the TSC and channel switching hassle in the BSP make retailersâ products less competitive and reduce profits, respectively. (ii) Being a BSP retailer is not necessarily better, as blockchain's effect on product quality and consumer experience determines market share and profitability. Whether consumers can benefit from blockchain depends on the basic value of the BSP product and the aggregate level of consumer utility from the BSP. (iii) Blockchainâbased quality disclosures and network externalities might not always benefit BSPs, they could increase BSP retailersâ costs or increase competition in the market. (iv) The strict supervision policy reduces the TSC retailer's profit and product quality. Meanwhile, the technology subsidy policy contributes to the development of the BSP, but the BSP retailer needs to be wary of uncontrolled price increases due to policy spillover effects.
Md Al Amin, Dewan Hafiz Nabil, Roberto Baldacci, Md. Habibur Rahman
This study investigates the challenges in implementing blockchain technology (BT) in sustainable supply chain management (SSC). The study thoroughly analyzes the literature and expert opinions on BT, SCM, and sustainability. A total of 24 barriers are identified, categorized into the Internet of Things, strategic, supply chain, legislation, and external factors. The findings are evaluated using the Integrated Fuzzy TOPSISâISM tool. The results indicate that barriers related to the supply chain have the most significant impact on the adoption of BT in SSC. The study also reveals the interrelation among sub-barriers within the supply chain, providing valuable insights to improve adoption. Finally, a strategic action plan based on a fishbone diagram is provided to reduce the effects of supply chain barriers. This study provides a theoretical foundation for using BT to achieve long-term supply chain goals.
Abstract This paper seeks to examine the influence of sustainable supply chain strategy (SSCS) on sustainable competitive advantage (SCA) by considering the mediating role of blockchain technology (BCT) adoption and the moderating role of Digital Transformation (DT) and sustainable supply chain practices (SSCP). Drawing upon the resource-based view theory, we empirically tested our model using a sample of 331 hotel and resort managers, and a quantitative approach was used. The results revealed that BCT adoption mediates the relationship between SSCS and SCA. They further explain that DT significantly moderates the relationship between the SSCS and BCT adoption, whereas SSCP significantly moderates the relationship between the BCT adoption and SCA. All research objectives are successfully obtained. As a result, firms must not only adopt sustainable strategies, but also adopt advanced technologies and transformative practices in order to maintain a competitive advantage in todayâs dynamic market landscape. The findings of this study hold significant implications for both theory and practice, providing strategic insights for organizations seeking to improve their competitive positioning by embracing sustainable strategies and technologies.
Abstract Increasing complexity and the involvement of additional stakeholders make it impossible to predict the impact of each decision, which puts supply chain managers in uncertain situations. However, a supply chain that can adapt and react to the current scenario gives them some control over these ambiguous circumstances. These characteristics of sensing disturbances or threats and giving appropriate responses can be improved with the implementation of blockchainâenabled technologies and can prove critical to the success of supply chain resilience and sustainability. This study has identified 21 blockchain technologyâenabled critical success factors for supply chain resilience and sustainability and grey theory is used to address the limitation of data availability. This study incorporates the combination of the GreyâDEMATEL (Decision Making Trial and Evaluation Laboratory) method to investigate the impact of critical success factors and to obtain the cause/effect relationship. Sensitivity analysis is performed to assess the robustness of obtained results. The findings indicate that internal integration is the most crucial causal factor, as it initiates the effects of many other critical success factors. Whereas Standardized Data Management, followed by Smart Ordering tops the effect group. As blockchain technology is still in its early stages of development, this study will encourage researchers and industry practitioners to strive for greater efficiency and effectiveness in their supply chain practices and to enhance the resilience and sustainability of their supply chains.
As a result of the increasing scrutiny of fresh products, greengrocers are now forced to concern themselves with the deterioration of their productsâ freshness and employ blockchain technology as a tracing system. However, in the logistics system, the third-party logistics service provider (LSP) is motivated to be overconfident in order to extract extra profits, thus intensifying the dilemma faced by the fresh agricultural product industry. This paper focuses on the association between blockchain technology and overconfidence, in which the third-party LSP is supposed to overestimate the effect of the retailerâs freshness keeping measures. Differing from the previous literature, we analyze a situation wherein blockchain technology is adopted with explicit execution. Based on the optimal control model, we obtained three main conclusions: First, the overconfidence of a third-party LSP does not damage the logistics system but changes the freshness-keeping strategy of the retailer. Second, interestingly, although blockchain technology performs effectively when it is adopted as an initially established system with a freshness keeping strategy, it is not always a wise decision for managers to adopt a blockchain, especially when adopting it as a countermeasure for overconfidence. Third, we found that blockchain technology has a greater effect on freshness-keeping than overconfidence. Thus, in the fresh agricultural product industry, managers should adopt blockchain technology before overconfidence occurs and pay more attention to exogenous prices and freight to decide whether to adopt blockchain technology.
James C. Brau, John W. Gardner, Hugo A. DeCampos, Krista Gardner
Purpose Blockchain technology offers numerous venues for supply chain applications and research. However, the connections between specific blockchain features and future applications have been unclear to date in its evolution. The purpose of this study is to fill this void. Design/methodology/approach The authors advance the understanding of blockchain in supply chain management by providing a new research framework built on unique blockchain features as applied across core supply chain functions. Findings This studyâs framework is a feature-function matrix that integrates four overarching supply chain functions (i.e. supplier management, logistics, production processes and customer management) with nine blockchain features (i.e. traceability/provenance, accessibility, visibility, immutability, distributed/shared ledger, validity, peer-to-peer transacting, pseudonymity and programmability). This studyâs feature-function framework is supported by a structured, systematic review of reviews using PRISMA methods. The authors use the framework to present a future blockchain research agenda in supply chain management. Originality/value The authors provide a new blockchain feature/supply chain function framework and provide a structured path for future research.
Blockchain technology can be used to record real data at various nodes in the entire supply chain and can achieve timely data sharing and full traceability of the whole lifecycle of products in the supply chain. This study conducts a systematic literature review based on the WOS database, focusing on the research topic of the application of blockchain technology in supply chain management. We propose clear search and screening criteria based on 4 research questions and finally obtain 591 target studies. We conduct a detailed study on the distribution of the target literature in this research area, country/region, institution, and journal. Different countries/regions cooperate with each other and, thus, are clustered into five significant countries regionsâ cooperation networks. There is a strong coupling relationship between research institutions, forming four major institutional cooperation networks. According to the analysis of those papers with a high number of citations, most of such papers were published in 2019, while the cross-citation phenomenon between papers occurred more frequently in 2021 and 2022. We use VOSviewer for visual coupling analysis of all keywords, which are automatically clustered into three research hotspots. Using CiteSpace to perform timeline-based keyword cooccurrence analysis, we find that scholars have gone through a âdiscovery-acceptance-question-improvementâ process for the application of blockchain technology in supply chain management. According to the intensity and duration of burst detection words in different years, we draw three key points for future research. (i) Blockchain technology should be used to restructure and optimize the high-end food and medical cold chain supply chains. (ii) Blockchain technology should be used to enhance the cooperative relationship between supply chain members and the overall competitiveness of the supply chain. (iii) Innovate blockchain encryption technology that should be used to reduce the risk of information and privacy leakage in the supply chain.
L. SchÀdler, Michael Lustenberger, Florian Spychiger
Blockchain systems are a novel technology that allow for innovative business models. However, due to the decentralized nature of blockchains, new organizational challenges arise. Blockchains require intricate governance mechanisms to align all interests of the involved stakeholders. A crucial part of blockchain governance is decision-making, i.e., the way how a community of a blockchain system can reach decisions. While blockchain governance has received considerable interest of academia, decision-making in blockchains has not yet been sufficiently addressed. Through an exploratory multiple case study, we establish a framework for analyzing decision-making in blockchain systems and identify two dimensions along which decision-making in blockchains can be classifiedânamely community-driven vs. institution-driven as well as off-chain vs. on-chain decision-making. Even though blockchains are decentralized systems, we can show that there are often highly centralized elements present. The degree of this centralization varies across blockchains and might be connected to the business cases and origins of the different systems. Furthermore, many factors of decision-making processes in blockchains are still off-chain and only some factors are truly on-chain. We arrived at these insights through a structured approach for decision-making in blockchains. Thus, we provide new tools for researcher and practitioners and pave the way to novel blockchain applications with sound decision-making mechanisms.
Nowadays, creating a blockchain-based system for supply chain tracing is a complex task. This paper defines a model, a graphical domain specific language, and a set of tools aimed at helping supply chain domain experts to create blockchain based tracing systems for their supply chains. Starting from a graphical representation of the supply chain, the solidity smart contracts implementing the related tracing system are automatically generated by our framework. Small interventions of programmers are required to customize and finalize such smart contracts. A set of web based interfaces to interact with such smart contracts are also automatically generated. We are confident that our results will increase blockchain usage for supply chain traceability thanks to the automatic process of smart contract generation.
This study applies Stackelberg game theory to analyze and compare optimal operational strategies in four supply chain finance scenarios: traditional trade financing (TI), trade financing through the blockchain platform (BI), traditional external financing (TE), and external financing through the blockchain platform (BE). The main findings are as follows: First, the adoption of the blockchain platform reduces the interest rate threshold, making external financing more advantageous for retailers with higher capital constraint. Further, financing through the blockchain platform leads to higher wholesale prices, retail prices, and order quantities compared to traditional financing scenarios. Second, internal trade financing and the use of blockchain technology are preferred over external bank financing. However, conducting external bank financing through the blockchain platform yields greater profit growth for manufacturers and retailers. Accessing the blockchain platform is the optimal strategy for retailers and banks, leading to a favorable âmulti-winâ situation when the manufacturerâs platform fees are reasonable. Third, the manufacturerâs risk guarantee ratio plays a crucial role in determining the choice of financing mode, particularly when the retailer faces the risk of debt default. This study contributes to the literature by quantifying the impacts of blockchain technology deployment for three aspects that have been overlooked in previous studies: the set-up cost and access fee of the blockchain platform, the service level provided by the platform, and the demand increase resulting from blockchain technology adoption.
Muhammad Imran Sarwar, Kashif Nisar, Imran Khan, Danish Shehzad
A blockchain is a distributed ledger (DL) that records and tracks of transactions on a P2P network. It was originally designed for cryptocurrencies, but it is now used in healthcare, supply chain management, finance, and many more fields due to its security and trustworthiness. Trust and security are critical factors in any business, and the B2B model is no exception. In businesses, trust becomes more critical when the stakes are higher and the relationships are more complex. Centuries-old Double-Entry Accounting (DEA) is still used as an underlying accounting practice, and its reliability and efficiency are beyond question. But a critical review of DEA reveals that it lacks support for B2B transactions, as the two parties maintain their accounting books without cross-checks and verifications that may lead to an implausible situation. Triple-Entry Accounting (TEA) is an emerging accounting practice introduced in the recent past to overcome the limitations of DEA. It only applies if an outside person or business is involved in a transaction and is not meant to record any internal business transactions. Recording transactions on a blockchain and entering the third transaction via TEA are conceptually the same. The potential of blockchain-based TEA can address the challenges of the B2B business model and overcome some specific limitations of DEA. This study aims to survey the current state of the adaptation of blockchains and TEA in B2B transactions. The methodology used in this study can be classified as exploratory qualitative research and is based on the latest literature on the topics. The findings of this study would deepen our understanding of blockchains and TEA for B2B transactions as they highlight new opportunities and challenges.
Abstract Supply chain management has become increasingly complex, leading to information loss and delayed transmission, exacerbating the bullwhip effect. Furthermore, the need for more reliable information storage, traceability, and accountability has slowed supply chain management. In this context, blockchain technology (BCT) solves the bullwhip effect problem, as it supports distributed networking, information synchronization among nodes, digital encryption, traceable information, and unchangeable block content. This paper proposes using public blockchain to solve the bullwhip effect problem in the supply chain (SC), which has yet to be discussed in published academic research papers. To this end, a framework has been developed to determine the readiness of a supply chain for blockchain adoption. This framework includes a checklist to evaluate the motivation, timing, and appropriate platform for adopting blockchain. The framework has been validated using a case study of personal computer devices, which were affected by the Covid-19 pandemic and resulted in semiconductors supply chain disruption. The study involved polling four executives The study involved polling four executives (of large organizations in Egypt and some Middle Eastern countries) representing different stages in the supply chain, they are retail, distribution, manufacturing, and supply. The results showed that while the executives recognized the benefits of adopting blockchain, they were still determining if it was the right time for adoption and did not see the technology ready for their supply chains. Finally, some public blockchain platforms were introduced to help businesses choose the most suitable platform for adoption.
Lin Chen, Lei Xu, Zhimin Gao, Ahmed Sunny · 6 authors
Recent advances in blockchain research have been made in two important directions. One is refined resilience analysis utilizing game theory to study the consequences of selfish behavior of users (miners), and the other is the extension from a linear (chain) structure to a non-linear (graphical) structure for performance improvements, such as IOTA and Graphcoin. The first question that comes to mind is what improvements a blockchain system would see by leveraging these new advances. In this article, we consider three major properties for a blockchain system: α-partial verification, scalability, and finality-duration. We establish a formal framework and prove that no blockchain system can achieve α-partial verification for any fixed constant α, high scalability, and low finality-duration simultaneously. We observe that classical blockchain systems like Bitcoin achieve full verification (α =1) and low finality-duration, Ethereum 2.0 Sharding achieves low finality-duration and high scalability. We are interested in whether it is possible to partially satisfy the three properties.
The robustness of critical infrastructure systems is contingent upon the integrity and transparency of their software supply chains. A Software Bill of Materials (SBOM) is pivotal in this regard, offering an exhaustive inventory of components and dependencies crucial to software development. However, prevalent challenges in SBOM sharing, such as data tampering risks and vendors' reluctance to fully disclose sensitive information, significantly hinder its effective implementation. These challenges pose a notable threat to the security of critical infrastructure and systems where transparency and trust are paramount, underscoring the need for a more secure and flexible mechanism for SBOM sharing. To bridge the gap, this study introduces a blockchain-empowered architecture for SBOM sharing, leveraging verifiable credentials to allow for selective disclosure. This strategy not only heightens security but also offers flexibility. Furthermore, this paper broadens the remit of SBOM to encompass AI systems, thereby coining the term AI Bill of Materials (AIBOM). The advent of AI and its application in critical infrastructure necessitates a nuanced understanding of AI software components, including their origins and interdependencies. The evaluation of our solution indicates the feasibility and flexibility of the proposed SBOM sharing mechanism, positing a solution for safeguarding (AI) software supply chains, which is essential for the resilience and reliability of modern critical infrastructure systems.
This paper presents a general-purpose approach for the drug supply chain management, by proposing a DLT-based methodology to facilitate and make more efficient the development of such applications. For specific domains, such as drug management and traceability, a system based on Django Python framework, on Ethereum blockchain, and on web3.py library has been developed that can be customized for most real supply chains, automatically generating the specific applications (database schema, smart contracts, apps). A case study about a simple drug traceability system for a producer to hospital wards is described, to show how this approach works.
Blockchain is an emerging technology in logistics and supply chain management. However, its adoption is still in a doldrum with limited success. This study explores container shipping service providersâ (CSSPs) current adoption status and perceived barriers in integrating blockchain applications before providing adoption recommendations. A qualitative analysis was conducted on thirty-two interviews with experts holding managing positions from container terminal operators, shipping companies, and freight forwarders. Thematic analysis was employed to extract and aggregate information from the qualitative database. This study revealed the difference between CSSPsâ perceptions of blockchain adoption barriers and, accordingly, their adopting approaches. A challenging implementing process for the current blockchain applications in container shipping was depicted with ten barriers and twenty-nine connections. Industry experts provided six recommendations for successful blockchain adoption to address the complicated situation. This paper deepens the knowledge about blockchain in supply chains, especially maritime logistics operations. It sheds light on the complexity of perceived adoption barriers, their effect on CSSPsâ approaches to blockchain applications, and potential digitalization policies to be taken.
Decentralized, transparent, immutability, irreversible, autonomy, open source, anonymity, ownership and uniqueness, source, contract automation are at the forefront of the features that allow blockchain technology to be accepted within the sectors. Thanks to these features, it has an important potential in terms of applicability, as well as in supply chain management, as in many other fields. In this study, the compatibility and impact level of the features of blockchain technology with the sustainability of supply chain management are investigated. Within the scope of supply chain management, effective information sharing, integration between processes, trustworthy, systematic data management, auditability, transparency, strong relationship between stakeholders, high efficiency, quick answer, ability to increase sustainability, transition to digitization, uncertain legal status, new technology, integration compatibility with other technologies, optimizing time parameters are evaluated. In the results obtained with the Grey Relational Analysis-based DEMATEL method, effective information sharing, integration between processes, systematic data management, quick answer, uncertain legal status, new technology, and integration compatibility with other technologies are included in the group affecting other criteria. Within the scope of the study, the characteristic features of blockchain technology for supply chain management are interpreted with relationship map and graph diagram. The study provides both theoretical and practical contributions by drawing attention to the compatibility of the blockchain in supply chains, and guides the employees in the supply chain line on how they can best guide their companies and on which parameters they can gain by enabling them to adopt blockchain technology. With blockchain technology, it offers the opportunity to achieve higher efficiency with less time, less cost and faster response, which can realize its sustainability mission, which includes each of the economic, social and environmental dimensions.