Sumit Kumar Rana, Arun Kumar Rana, Sardar M N Islam Naz, Ashutosh Kumar Singh Ā· 5 authors
The most prevalent issue in the supply chain ecosystem is introducing transparency to the system. Another issue is fostering trust among various stakeholders to support successful process execution. Depending on the domain and the stakeholders, the supply chain process may change. Thus, solving the issue is challenging. Blockchain technology, sometimes referred to as distributed ledger technology, is beneficial in many ways in a variety of industries, including finance and healthcare. Blockchain based model can resolve the issues of traditional supply chain ecosystem. It creates a decentralized and transparent system where every decision is taken with the help of consensus of the associated stakeholders. This supports an immutable ledger so unauthorized modification is not supported. In this article, we address the issues that the supply chain ecosystem faces as well as the benefits of blockchain technology in resolving these issues. As well as some of the remaining challenges and opportunities, other aspects of blockchain technology are explored that will enable it flourish in future supply chains.
Abstract In electronic business (e-business), innovative technologies such as blockchain technology (BCT) have a fundamental impact on activities along the value chain. The perspective of the value chain in the context of blockchain technology has been explored, but contributions are mainly focused on supply chain management and tangible goods. Hence, the e-business domain lacks research, even though many beneficial features for service value chains and the transaction of intangible goods exist. Therefore, the current paper focuses on (1) how and why value chain activities are supported by using BCT and (2) how the stakeholderās responsibilities change for value chain activities that are affected by BCT. A multiple case analysis of four e-business cases, i.e., Theta, OpenBazaar, Presearch, and Crypviser, is conducted. Based on four ideal value chains by Wirtz (2019) (cf. 4C-Net Model), steps that depend on BCT or that are supported by BCT are outlined. By conducting a cross-case analysis, we derive eight blockchain technology propositions that enlarge the existing knowledge base.
We study an auction with $m$ identical items in a context where $n$ agents can arbitrarily commit to strategies. In general, such commitments non-trivially change the equilibria by inducing a metagame of choosing which strategies to commit to. In this model, we demonstrate a strategy that an attacker may commit to that ensures they receive one such item for free, while forcing the remaining agents to enter into a lottery for the remaining items (albeit for free). The attack is thus detrimental to the auctioneer who loses most of their revenue. For various types of auctions that are not too congested, we show that the strategy works as long as the agents have valuations that are somewhat concentrated. In this case, all agents will voluntarily cooperate with the attacker to enter into the lottery, because doing so gives them a chance of receiving a free item that would have otherwise cost an amount commensurate with their valuation. The attack is robust to a large constant fraction of the agents being either oblivious to the attack or having exceptionally high valuations (thus reluctant to enter into the lottery). For these agents, the attacker may coerce them into cooperating by promising them a free item rather than entering in to the lottery. We show that the conditions for the attack to work hold with high probability when (1) the auction is not too congested, and (2) the valuations are sampled i.i.d. from either a uniform distribution or a Pareto distribution. The attack works for first-price auctions, second-price auctions and the transaction fee mechanism EIP-1559 used by the Ethereum blockchain.
Time-consuming ocean transportation for international trades requires enterprises to advance payments for goods, which can be fatal for small and medium enterprises with insufficient self-owned capital. Logistics finance is an effective solution for tackling this problem. However, traditional logistics finance has long been plagued by information asymmetry, tremendous paperwork, and long financing cycles. As a distributed database with characteristics of transparency, traceability, and immutability, blockchain technology shows good potential in addressing pain points on traditional logistics financing platforms. This paper focuses on the operational mechanism and value analysis of the blockchain-based port logistics finance platform. The conceptual architecture of the blockchain-based port logistics finance platform is constructed, and a value analysis model based on the Newsboy Model is established for quantitatively analysing the platformās value. The results revealed that the introduction of the blockchain into port logistics financing can significantly improve small to medium-sized enterprisesā profitability by providing reliable financing channels. The results also indicate that participantsā profit on the blockchain-based platform may be influenced by the speed of market expansion, initial capital size, and financing cost. This paper also discusses theoretical and managerial implications by providing insights into the participantsā decision-making on the platform under different constraints.
In this paper, we examine the balance between allocative efficiency and price discovery in blockchain-based finance. Our analysis reveals that the use of private pools, while improving blockspace allocation efficiency, negatively impacts price discovery. We show that the presence of private pools limits the amount of information revealed through pending orders and increases the execution risk of informed orders. We argue that price discovery can be improved by increasing the number of validators monitoring private pools or the block production rate on the chain.
Chiara Acciarini, Francesco Cappa, Giovanni Costanzo, Martina Prisco Ā· 7 authors
Blockchain technology is continuing to spread in many sectors, including the food industry, which has begun to embrace it in order to face new transformative trends. Indeed, since it is based on distributed ledgers and the encryption of stored data, blockchains may provide greater security for information delivered. It is still unclear what effects the use of blockchains has on customer behavior in the food sector. Consequently, our analyses tested the impact that blockchains have on customer purchase intentions in the food sector. Our results show that information provided to customers about the use of a blockchain to protect information throughout the supply chain can positively influence their purchase intentions. This study, consequently, offers new insights into the benefits generated by blockchains in the food sector and contributes to scientific understanding of the phenomenon overall. Moreover, our results provide insights that are also useful for managers and policymakers to further spread the use of blockchains.
Abstract Relationships in multi-tier supply chains (MTSCs) are complex and require constant information sharing. For MTSCs involved in perishable product distribution, blockchain technology (BCT) is one of the most promising technologies that can ensure productsā traceability and safety. This study examines a Portuguese MTSC for frozen fish products piloting BCT adoption for its supply chain (SC) practices. The goal is therefore to explore the consequences of information availability inherent for BCT adoption pilots in the SC context. This study follows a mixed-method approach, with qualitative and quantitative data collection techniques. Three semi-structured interviews with players from a single frozen fish SC, including supplier, transporter, and retailer were conducted. MAXQDA Analytics Pro 2022 software was used for further coding and data analysis. An online survey among retail chain consumers was conducted resulting in 112 responses. Regression analysis and Pearson correlation test were further performed via IBM SPSS Statistics software. Data collection for both parts took place between December 2021 and July 2022. This study explores four layers in the SCā including supplier, transporter, retailer and final consumer. Findings revealed a current lack of extensive and detailed information from upper tiers regarding productsā characteristics. Despite being hyped as a ātrust-enablingā technology, BCT was found not to eliminate the need for trustful relationships between players prior to adoption, as information input requires human intervention. Even in those cases when the traceability option is not of major interest to final consumers, findings revealed a higher probability of purchasing fish products that have traceable information available.
Abstract Fraudulent returns have become increasingly frequent in the development of online retail platforms, leading to huge losses for retailers. A blockchainābased system can help eliminate this problem primarily because the data stored in a blockchain network cannot be modified. In this paper, we study the impact of blockchain technology that aims to eliminate fraudulent return behavior on retailers and their upstream suppliers. We develop a gameātheoretic model that comprises a supplier, a retailer, and customers and analyze the equilibrium outcomes. The results show that the retailer would (not) adopt blockchain technology if the efficiency of the supplier's investment in the innovation of its products is high (low). Moreover, if the retailer's loss from the return is low (high), the adoption of blockchain technology decreases (increases) the supplier's investment and the wholesale and retail prices. In terms of its effect on profitability, we reveal that if the fraudulent return losses are high, using blockchain technology always benefits the supplier; otherwise, it increases retailer profitability and supply chain performance but may make the supplier suffer losses in profits. Interestingly, the retailer would adopt blockchain technology to ensure profitability in situations where the number of customers without fraudulent returns and the intensity of losses are low; however, this weakens supplier profitability and meanwhile reduces supply chain performance.
Joe NaoumāSawaya, Samir Elhedhli, Paulo R. V. de Carvalho
Counterfeiting is an ever growing problem worldwide which is exacerbated by the ease of access through e-commerce and online shopping. This calls for innovative technologies, such as blockchain, to identify, track, and prevent fake products from reaching consumers, especially for vital sectors such as the drug industry, which is the main motivation for this work. We investigate the strategic implications of using blockchain technology to deter counterfeiters. We particularly focus on the case of deceptive counterfeits that infiltrate legitimate distribution channels. Deceptive counterfeits lack the quality of genuine products and may pose immense health and safety risks to consumers who are unable to distinguish them from genuine products at the time of purchase. In contrast to prior literature that assumes that blockchain eliminates deceptive counterfeiting, we present a model that realistically considers blockchain as a technology that increases the capability of detecting counterfeits. This capability nonetheless comes at an increasing cost that may financially discourage genuine manufacturers from adopting the technology. The presented model shows that blockchain is not always financially beneficial and demonstrates that manufacturers can strategically balance between product quality and investment in blockchain to combat counterfeiting. Furthermore, our results demonstrate that, with the availability of blockchain, genuine manufacturers may be less interested to differentiate products based on quality, but rather rely on blockchain to block counterfeits.
In this paper, we have presented the design and implementation of a blockchain-based approach for ensuring reliable supply chain management for commodities transported through smart containers. To administer interactions between the sender and receiver, our developed system makes use of the Ethereum blockchainās smart contract features. Smart containers equipped with Internet of Things (IoT)-enabled sensors are used to monitor shipping conditions to check predefined shipping requirements. Smart contracts on Ethereum are used to automate payments, validate receivers, and give refunds in the case of violation of predefined requirements. We have also implemented our designed front-end decentralized WebApp and wallet that allows the sender and receiver to communicate with Ethereum smart contracts.
Xingfen Liu, Zhongbao Zhou, Feimin Zhong, Jianmai Shi
Abstract Blockchain technology is commonly used in many industries. One current application is that providing supply chain transparency, sellers can disclose product information to consumers for authentication and certification. To examine the supply chain blockchain based transparencyālevel strategy and its interact with different refund policies, in a twoāechelon supply chain, we consider a supplier decides on the transparency level and wholesale price, and a retailer decides on retail price and provides full refund (policy F), or partial refund (policy P), or no refund (policy N) policy to consumers. We find the refund policy choice and the transparencyālevel strategy have a mutual influence. A lenient refund policy (a higher refund) can generate more demand, which makes the supplier to provide a high transparency level, whereas a high consumer's transparency awareness also promotes the retailer to choose a more lenient refund policy. We find Pareto improvement exists under a costāsharing strategy, and the retailer is willing to share part of the adoption cost only when the efficiency of improving the transparency level is moderate. Otherwise, the retailer adopts blockchain technology only when there is no cost sharing. Further, different shipping cost bearers can change the sensitivity of refund policy choice, and the supplier prefers to provide a high transparency level when the retailer covers the shipping cost. When the retailer becomes more socially responsible, the supplier is more willing to provide a higher transparency level, and the retailer is more willing to provide a partial refund policy.
Blockchain technology offers several beneficial features that make it well-suited for supply chain management (SCM). Particularly, it can improve transparency, traceability, security, efficiency, and accountability in supply chains (SC). This chapter focuses on how blockchain technology can completely transform SC processes due to its inherent features. By implementing blockchain, businesses can cut costs, improve efficiency, and ensure accountability. The chapter explains the basics of blockchain technology and its potential benefits for SCM. The various beneficial features of blockchain technology such as trust, immutability, reliability, and security are discussed and highlighted in the chapter. The chapter showcases real-world uses of blockchain technology in SCM to depict the possible benefits. Benefits and challenges of incorporating blockchain into SC processes are also discussed in the chapter. Finally, this chapter emphasizes how crucial it is for companies to identify the factors that weaken their SC and to ensure that blockchain is applied to address such issues.
In the context of ādouble carbonā, constructing green supply chains is the only way to implement sustainable development strategies in the manufacturing industry. This paper, therefore, examines the manufacturing supply chain for low-carbon products. More recently, the lack of technical information flow due to data barriers up and down the supply chain has led to high energy consumption, the serious waste of raw materials, and the substandard production of green products. Therefore, the level of supply chain data governance must be improved to enhance the sustainability of the supply chain. By studying blockchain-based data governance and government policy incentives for manufacturing supply chains, this study constructed an evolutionary game model based on prospect theory for the tripartite relation of government, manufacturers, and retailers. The difference between the perceived and actual value was introduced into a three-way evolutionary game model based on prospect theory to optimize the practical implications of the model. The model was then simulated using system dynamics. Through the simulation, it could be concluded that the ability of the three-way evolutionary game to reach the optimal stability point is only related to the sensitivity of the retailerās perceived value. Additionally, the outcome of the three-way evolutionary game can be unstable, with changes in perceived value sensitivity. Finally, relevant policy recommendations are made. The innovation of this study is establishing a data governance platform that uses data governance to build green supply chains. Additionally, the government was added to the subjects of the game to explore the role of government policy in data governance and sustainable development. In addition, the evolutionary game model was incorporated with prospect theory and traditional expected utility theory, and the rational deficits and preferences of decision makers were taken into account, which brings the results closer to the reality of the situation.
The fierce competition in international markets and the rapid advancements in information technology result in shorter lead times, lower transportation capacity, and higher demand. The supply chain network is one of the most crucial areas of concentration in the majority of business circumstances. Blockchain technology is a promising option for safe information exchange in the supply chain network. Although preserving security at every level of the blockchain is somewhat important, cryptographic methodologies are frequently used in the existing works. The novel perceptive craving game search (PCGS) optimization algorithm is used to optimally generate the key for data sanitization, which assures the privacy of logistics data. Here, the original logistics data obtained from the manufacturer is sanitized with an optimal key generated by using the PCGS optimization algorithm, avoiding the risk of unauthorized access and data swarm that causes the system to lag. Moreover, the sanitized data obtained from the manufacturer is transmitted to the allowed parties via different sub-chains. The same generated key is used on the receiving customer side for reconstructing the original information from the sanitized data. The performance and results of the proposed blockchain-based privacy preservation model are validated using various parameters.
Purpose With refineries contributing 68% of CO 2 emissions from stationary combustion sources alone, smart technologies and the circular economy (CE) model for resource loop optimization can be a solution for carbon neutrality, especially within petroleum. Thus, this study aims to explore energy conservation by green technology improvement as a CE strategy for resource loop optimization and digital incorporation to maximize reprocessing lead ability rate and carbon-neutral benefits. Design/methodology/approach A game theory approach with Stackelberg equilibrium is considered under government cap-and-trade regulation to stimulate green technology improvement. The refinery acts as a Stackelberg leader and invests in green technology and the retailer as the Stackelberg follower, collects end-of-life lubricants against refund price and offers a two-part-tariff contract to the manufacturer having a significant role in smart technologies. Findings First, green technology improvement is directly influenced by the reprocessing capability and refund price and digital technologies are significant to consider. Second, a two-part-tariff contract coordinates the supply chain for limited reprocessing capability by the retailer. Lastly, the government can effectively manipulate the development of green technology by changing the permit price depending on the intentions. Research limitations/implications The primary limitation is this study has focused on the petroleum sector and data was referenced from the oil refineries of a single country. Practical implications Overall, this study provides empirical guidance for policymakers on how to leverage energy-efficient smart technologies for lubricant reprocessing, enabling resource optimization as part of a CE strategy in the petroleum industry and advancing sustainable development goals. Originality/value The suggested model responds to the contemporary literature related to CO 2 emissions and CE initiatives across the petroleum sector with the extended role of smart technologies and government cap-and-trade regulations.
Purpose Adopting new technologies to improve supply chain activities and processes is essential due to increasingly complex and dynamic business environments. Particularly in the pharmaceutical industry, high-quality standards must be met, requiring transparency and visibility in the supply chain. This research aims at investigating the implementation of blockchain technology in the supply chain of an Egyptian pharmaceutical company. Design/methodology/approach The research applies a single case-study approach building on the theoretical underpinnings of transaction cost economics. Twenty-five semistructured interviews were conducted with pharmacies and employees of the case company to identify the blockchain technologies' potential for pharmaceutical supply in Egypt. Further analyzing the frequencies of the codes, the authors elaborate on specific relationships between the observed practices. Findings The research revealed the potential benefits of adopting blockchain technology. Transaction costs are indeed positively impacted by reduced contracting costs, processing costs and lead times, also ensuring the safe delivery of medications. However, the findings also highlight obstacles related to running costs, awareness and company culture. Regarding supply chain governance, blockchain technology can enhance collaboration within the supply chain as well as with important stakeholders. Practical implications Insufficient management of pharmaceutical supply chains (PSC) may affect a company's reputation but also disrupt the patient's healing process due to temperature damage and counterfeit medicines. Blockchain governance, in this vein, can ensure a safer and more reliable supply of pharmaceutical products. For intraorganizational purposes, however, cloud solutions, barcoding and generally digital platforms are rated more frequently than blockchain solutions. Originality/value The present study contributes to an advanced understanding how blockchain technology supports PSC, particularly in an emerging country context like Egypt. It thereby confirms and extends previous research as well as adds to the theoretical underpinnings of digitalized supply chains.
Consumer knowledge of the goods produced or processed by the numerous suppliers and processors is still relatively low due to the growing complexity of the structure of pharmaceutical supply chains. Information asymmetry in the pharmaceutical sector has an effect on welfare, sustainability, and health. (1) Background: In this respect, we wanted to develop a productive structure for a pharmaceutical supply chain that satisfies the consumer information needs and fosters consumer confidence in the pharmacy goods they buy. By using blockchain technology, the main goals were to develop and implement a pharmaceutical supply chain. (2) Objectives: The main objectives of this work were to leverage an Ethereum platform for the development of a tractability system in a pharmaceutical supply chain environment and to analyze the efficiency of MSMAChain with respect to the cost and execution of transactions based on our designed smart contracts. (3) Results: This research looked into a variety of issues related to the value, viability, and effects of blockchain technology for use in supply chain applications. The methods and creations in this environment were monitored and researched. It is vital to identify a number of crucial subjects including future research areas, in order to achieve the widespread acceptance of the supply chain traceability provided by blockchain technology. (4) Conclusions: MSMAChain, an Ethereum blockchain-based approach, leverages smart contracts and decentralized off-chain storage for efficient product traceability in terms of the cost and execution of transaction for a health care supply chain.
Primary healthcare (PHC) has become a concern in most resource constraint economies particularly in the global south where meeting this important economic need has become a burden. Given this, blockchain technology (BT), a promising transformation in contemporary service delivery, has become an alternative for service-oriented institutions to meet their desired goals. In primary healthcare, BT has been utilised to lessen the burden on medical supply chain and data management. Nonetheless, the technology seems to be a preserve of the developed economies. In the global south, not only has the complexities of the technology hindered the implementation of the technology but the understanding of its affordances has also been nascent. This study extends Task-technology fit model with the perceived e-readiness model. Drawing on the best-worst method, this paper investigates PHC managersā decision to embrace BT for PHC delivery in Ghana. The study finds that, in order of relevance, task-technology, infrastructure and individual characteristics are the main drivers of BT adoption and implementation. The study proposes the implementation of various strategies relevant to ensuring a sustainable BT for the management of PHC in resource constraint economies.
Aggelos Kiayias, ĪĪ»ĪÆĪ±Ļ ĪĪæĻ ĻĻĪæĻ ĻĪ¹Ī¬Ļ, Philip Lazos, Giorgos Panagiotakos
Blockchain systems come with the promise of being inclusive for a variety of decentralized applications (DApps) that can serve different purposes and have different urgency requirements. Despite this, the transaction fee mechanisms currently deployed in popular platforms as well as previous modeling attempts for the associated mechanism design problem focus on an approach that favors increasing prices in favor of those clients who value immediate service during periods of congestion. To address this issue, we introduce a model that captures the traffic diversity of blockchain systems and a tiered pricing mechanism that is capable of implementing more inclusive transaction policies. In this model, we demonstrate formally that EIP-1559, the transaction fee mechanism currently used in Ethereum, is not inclusive and demonstrate experimentally that its prices surge horizontally during periods of congestion. On the other hand, we prove formally that our mechanism achieves stable prices in expectation and we provide experimental results that establish that prices for transactions can be kept low for low urgency transactions, resulting in a diverse set of transaction types entering the blockchain. At the same time, perhaps surprisingly, our mechanism does not necessarily sacrifice revenue since the lowering of the prices for low urgency transactions can be covered from high urgency ones due to the price discrimination ability of the mechanism.
Abstract In a modern supply chain, the quality of the final product is not determined by a single firm but depends on the joint efforts of multiple firms. When a quality defect happens, it is usually costāinefficient to trace the source of quality problems and all firms in the supply chain might incur a loss. New technologies such as blockchain can enable supply chain traceability at an affordable cost. In this paper, we develop a twoāechelon supply chain model including one supplier and one buyer in a competitive market. The quality of the final product depends on the two firmsā quality efforts. The buyer as a leader can set a wholesale price to stimulate the supplier's effort. In the absence (presence) of traceability, the payment of wholesale price is based on the realization of the final product's quality (the supplier's individual quality). Interestingly, we find that supply chain traceability may cause a decrease of the supplier's quality effort, thereby reducing the quality of the final product when market competition is sufficiently intensive. Furthermore, traceability weakly increases the supplier's profit but weakly decreases the buyer's profit. However, the total profit of the supply chain can be increased in the presence of traceability.
Consumersā perception of product value when purchasing is a critical issue relative to online platform commerce. This is especially true when the brand manufacturer authorises only a third-party reseller to sell through the platform, a practice that may provide opportunities to counterfeiters. To address this issue, we establish a theoretical model in which one brand manufacturer wholesales its products to a third-party reseller who then sells through an online platform. The platform acts as a marketplace, while multiple counterfeiters also exist on the platform, which may deceive consumers. In particular, we consider that the manufacturer can encroach with a direct channel and that the platform can adopt blockchain technology to help consumers identify authenticity. The results show that the platform could induce the brand manufacturer to encroach by deploying blockchain technology. Furthermore, an interesting result indicates that although either manufacturer encroachment or blockchain technology used alone can effectively boycott counterfeits, the coexistence of two strategies can raise the demand for counterfeit products. Finally, we find that when the brand manufacturer encroaches on the platform and the platform adopts blockchain technology, the brand manufacturer, platform, reseller and social welfare can achieve Pareto improvement, while the consumer surplus may be worse off.
Abstract The automotive industry is on a continuous transition towards a more sustainable and integrated ecosystem influenced by the fast-paced adoption of Electrical Vehicles (EVs) and the developments of emerging technologies such as Automated Vehicles (AVs). The road transportation sector is also experimenting with the emergent decentralized blockchain technology in various ways ranging from supply chain transparency to insurance and tokenization. Some of the recent use cases are the use of Non-Fungible Tokens (NFTs), unique digital assets designed to be immutable, to certify ownership of a vehicle, the data history of it or just for fan base development. The current paper reviews the literature findings concerning the potential of Non-Fungible Tokens for the automotive industry and proposes a new car ownership and revenue generation model using the ERC-1155 token standard. Our proof-of-concept based on fractional vehicle ownership demonstrates the feasibility of such a model that allows for revenue distribution amongst the vehicle owners according to the percentile invested in the vehicle acquisition.
Blockchain technology is being looked at to solve numerous real-world problems that demand transparency by meeting sustainable goals. Do we ponder whether this technology is a boon or a bane for the environment? This paper analyses blockchainās dominant consensus method, Proof-of-Work (PoW), which consumes more energy than Malaysia and Sweden and further deteriorates the environment through carbon emissions. This study is the first systematic evaluation of PoW consensus-based blockchain applicationsā environmental consequences. We found 11 significant Theories, 6 Contexts, and 26 Methodologies (TCM) in 60 reviewed articles. We propose an Antecedents, Drivers, and Outcomes (ADO) model, which depicts that marginal profits drive high energy consumption and carbon emissions, with non-renewable energy proportionally responsible for carbon emissions. The article distinctively uses an integrated TCM-ADO framework for literature synthesis and the PESTLE framework for reporting future research areas. This is the first study to use the following four frameworks: PRISMA; TCM; ADO; and PESTLE for systematic literature review. Profit is identified as one of the most significant drivers of energy consumption and further carbon emissions. The article proposes 65 future research areas and makes theoretical contributions to the literature that may interest academicians, practitioners, and social stakeholders.