Blockchain technology has been promised as a solution to social and environmental issues in supply chains. The potential includes reduction of vulnerable party exploitation and avoiding environmentally harmful practices. Yet, it remains unclear how these potential improvements are created and whether blockchain can truly contribute. Therefore, this field study explores and identifies the mechanisms for blockchain technology to facilitate positive social and environmental impacts in supply chains. We applied an explorative qualitative research approach and interviewed blockchain technology implementers and practitioners that allowed a detailed analysis of this problem despite the scarcity of practice data. The results include the development of a middle-range theory that shows barriers and drivers of blockchain-based technologies in supply chains, introduces the concept of blockchain-enabled system, and outlines expected outcomes and impacts. We further identify four impact pathways that describe how blockchain-enabled system create positive impact: (voluntary) market mechanisms, plausibility checks, smart contracts and tokenisation, and peer-to-peer trust. The study contributes by providing insights into âhowâ blockchain-based technologies in supply chains can lead to social and environmental impacts. The study also furthers the discussion on blockchain technologyâs role in supply chain implementation and addresses the yet unresolved problem of measuring the impact of such blockchain-enabled systems.
Blockchain is a disruptive technology, which is crucial for business operations. In this article, we analytically explore how two manufacturers can achieve efficient buffer stock sharing using the blockchain technology (BCT). We first build an analytical basic model with a deterministic lead time for material replenishment and quantify the benefit of adopting a buffer stock sharing scheme. In the absence of BCT, we demonstrate the natural occurrence of a cheating problem. We analytically derive the overall value of blockchain technology (OVBCT) for the buffer stock sharing scheme and highlight the conditions under which it is increasing or decreasing in demand uncertainty. We also show how the buffer stock service level can be improved with the use of BCT. To show robustness of the analytical findings, several extended cases are explored. Novel buffer stock division rules are then generated under the proposed buffer stock sharing scheme, which makes the alliance profitable. In addition, an n-manufacturers alliance is further analytically explored. We find that the core findings from the basic model continue to hold in the extended models. Finally, we establish the conditions for achieving Pareto improvement with the use of BCT by considering the logistics services adopted.
This study aimed to investigate the relationships between blockchain adoption barriers and identified the salient stakeholders for blockchain adoption in containerized international trade. The interpretative structural modelling and Cross-Impact Matrix Multiplication Applied to Classification analyses indicated that the most impactful among the eight barriers are lack of support from influential stakeholders, lack of understanding regarding blockchain, and lack of government regulations. The stakeholder mapping analysis demonstrated that the high salient stakeholders among 11 legitimate stakeholders are container lines, ports, beneficial cargo owners, freight forwarders/third party logistics, and customs authorities. The study is original and contributes to theory and practice as it uncovers both impactful barriers and critical stakeholders by adopting a stakeholder theory perspective and offers significant implications to practice, policy, and theory by combining these two analyses.
Nowadays, using Blockchain Technology (BCT) is growing faster in each country. It is essential to apply BCT in Supply Chain Network Design (SCND) and is considered by the designer and manager of SC. This research indicates Viable Supply Chain Network Design (VSCND) by applying BCT. A new form of two-stage robust optimization is suggested. Facility locations and activation BCT for VSCND is the first stage of decisions; finally, we determine flow transshipment between components in the next stage. The GAMS-CPLEX is used for solving the model. The results show that running BCT will decrease 0.99% in costs. There is an economic justification for using BCT when demand is high. A fix-and-optimize and Lagrange relaxation (LR) generate lower and upper bound to estimate large scale in minimum time. The gap between the main model and fix-and-optimize is better than the LR algorithm. Finally, this research suggests equipping VSCND by BCT that becomes more resilient against demand fluctuation, sustainable, and agile.
Maximilian Klöckner, Christoph G. Schmidt, Stephan M. Wagner
Blockchain is a prominently discussed technology in operations and supply chain management and firms increasingly engage in blockchain initiatives. Yet, an understanding of the technology's financial value remains elusive. Based on 175 firm announcements between 2015 and 2019, we conduct an international event study to estimate the impact of blockchain initiatives on the market value of the firm. We empirically demonstrate that blockchain announcements are associated with a significant average abnormal return of 0.30% on the announcement day, and that there are indications of positive longâterm effects on shareholder value. We further demonstrate how blockchain use case, project, and firm characteristics affect the stock market reaction. Specifically, we find that the stock market reaction to blockchain announcements is less positive when blockchain is used to trace physical objects or to share sensitive data, providing empirical evidence for the risk associated with current challenges in the design of blockchain use cases. Our results also suggest that the involvement of an external information technology service provider in a blockchain project attenuates the positive stock market reaction. Interestingly, more innovative firms do not experience a stronger stock market reaction to blockchain announcements. Leveraging the international scope of our sample, we further shed light on how the firm's competitive (i.e., industry factors) and macro environment (i.e., country factors) affect the stock market reaction. Our findings indicate that the industry's R&D intensity and the country's data restriction level play a crucial role in driving the value attributed to blockchain initiatives.
Owing to blockchain characteristics such as transparency, traceability, and disintermediation, blockchain technology has been widely employed in sustainable supply chain management. The COVID-19 pandemic has accelerated the use of blockchain technology in the supply chain. Although most companies have realized the importance of blockchain technology, they often lack understanding of how to plan, measure, cultivate, and improve their own blockchain operation capabilities. Academic research has insufficiently explored the connotations and internal structure of blockchain operation capabilities and does not provide a clear understanding of how to transform blockchain operation capabilities to produce effective performance. In this context, we proposed a concept of blockchain operation capabilities for first time. We took the perspectives of the resource-based view and sociomaterialism theory, based on IT capabilities, big data analysis capabilities, and existing blockchain supply chain research, and explored the relationship between blockchain operation capabilities and competitive performance. We then constructed a hierarchical model for blockchain operation capabilities. To test our proposed research model, we used an online survey to collect data from 1206 firm managers with blockchain technology supply chain experience. The results showed that blockchain operation capabilities has a positive impact on supply chain integration and competitive performance, while supply chain integration has a strong mediating effect on the blockchain operation capabilities and competitive performance relationship. Implications for research and practice are discussed.
The textile and clothing industry sector has today a big environmental impact, not only due to the consumption of water and the use of toxic chemicals but also due to the increasing levels of textile waste. One way to reduce the problem is to circularise the, currently linear, textile and clothing value chain, by using discarded clothes as raw material for the production of new clothes, transforming it into a model of circular economy. This way, while reducing the need to produce new raw materials (e.g. cotton), the problem of textile waste produced is also reduced, thus contributing to a more sustainable industry. In this article, we review the current approaches for traceability in the textile and clothing value chain, and study a set of technologies we deem essential for promoting the circular economy in this value chain - namely, the blockchain technology - for registering activities on traceable items through the value chain, and the Internet of Things (IoT) technology, for easily identifying the traceable items' digital twins.
Environmental regulations and standards play critical roles in corporate sustainable supply-chain practices. We explore and reflect on how blockchain can play a role. To answer that question, a small survey was distributed to blockchain experts and evaluated the relationship to implement the Electronic Product Environmental Assessment Tool (EPEAT) sustainability standards. We initially find that some characteristics of blockchain provided greater support for specific standards. Conclusions include that information transparency and traceability are more valuable for EPEAT environmental sustainability standards.
Manimuthu Arunmozhi, V. G. Venkatesh, Yangyan Shi, V. Raja Sreedharan · 5 authors
With smart sensors and embedded drivers, todayâs automotive industry has taken a giant leap in emerging technologies like Machine learning, Artificial intelligence, and the Internet of things and started to build data-driven decision-making strategies to compete in global smart manufacturing. This paper proposes a novel design framework that uses Federated learning-Artificial intelligence (FAI) for decision-making and Smart Contract (SC) policies for process execution and control in a completely automated smart automobile manufacturing industry. The proposed design introduces a novel element called Trust Threshold Limit (TTL) that helps moderate the excess usage of embedded equipment, tools, energy, and cost functions, limiting wastages in the manufacturing processes. This research highlights the use cases of AI in decentralised Blockchain with smart contracts, the companyâs trading policies, and its advantages for effectively handling market risk assessments during socio-economic crisis. The developed model supported by real-time cases incorporated cost functions, delivery time and energy evaluations. Results spotlight the use of FAI in decision accuracy for the developed smart contract-based Automobile Assembly Model (AAM), thereby qualitatively limiting the threshold level of cost, energy and other control functions in procurement assembly and manufacturing. Customisation and graphical user interface with cloud integration are some challenges of this model.
Dnyaneshwar Jivanrao Ghode, Vinod Yadav, Rakesh Jain, Gunjan Soni
Purpose A supply chain (SC) involves many stakeholders, directly or indirectly, for satisfying consumersâ requirements. SC management is restricted by a lack of information sharing among stakeholders as parties of SC do not have direct communication and/or are not willing to share private and competitively sensitive information. In the SC, the bullwhip effect (BWE) is an undesirable phenomenon that aggravates the SC performance and increases the overall cost of SC. The main culprit of BWE is the lack of SC coordination among the parties, which results from wrong and lack of information sharing. Blockchain technology (BT) has the main characteristic of distributed shared ledger that makes all parties in the SC network able to access data. This paper aims to develop a BT model and implement it into the SC. Design/methodology/approach A blockchain is developed consisting four SC stakeholders and an integrated development environment has been used for coding in Python. Findings The analysis of the impact of the adoption of BT in SC shows the reduction in BWE. Originality/value In SC, BT can be considered as an effective tool to share the demand data among all SC partners. Sharing of such data will improve SC planning and reduce the BWE.
As an important way to reduce emission, forestry carbon sink (FCS) has not been implemented effectively. Therefore, this paper aims to analyze the effectiveness and mechanism of applying blockchain technology in FCS projects by utilizing the differential game model. A Stackelberg differential game model between forest farmers and emission-controlled enterprises (ECEs) is developed to analyze the optimal emission reduction efforts and the optimal trajectory of forest farmers and ECEs before and after introducing blockchain technology. It is found that: (1) At the initial stage of the utilization of blockchain technology, if blockchain technology takes a leading role in stabilizing carbon prices, the ECEs prefer to purchase FCS instead of reducing emissions by their own technology. On the contrary, if blockchain technology takes a leading role in stimulating the vitality of the carbon trading market, ECEs tend to use emission abatement technology to meet the carbon quote requirements. (2) In the later stage, the incentive and stabilizing effects of blockchain technology on carbon prices tend to be balanced, and the emission reduction efforts of ECEs are lower than the efforts before applying blockchain technology. (3) The application of blockchain technology increases forest farmersâ willingness to reduce emissions because of its effection of cost reduction and efficiency improvement. Meanwhile, blockchain technology reduces abatement costs by influencing carbon prices. Therefore, blockchain technology improves forest farmersâ emission reduction efforts on the whole.
Companies manage their product portfolios to create value. Products and associated materials are important flows that link supply chains entities from upstream to downstream. Product deletion is a critical decision in product portfolio management. Current product management literature has predominantly targeted product proliferation, growth, and extension. Product deletion research is relatively and severely limited. Product deletion decisions are less appealing to managers; often due to significant operational changes and disruptions deletion creates within the firm and along the supply chain. Quality information and data can support sound product deletion decision making. Blockchain technology is a valuable tool that can effectively address information governance challenges in supply chains. To this end, we theoretically position blockchain technology as a governance mechanism supporting supply chain relational governance using relational view theory. This paper provides insights into the practice of blockchain and product deletion within a supply chain context. Theoretical and managerial implications are provided as we seek to link supply chain-related product deletion decision processes within blockchain technology supported information governance. There are promising potentials in both fields, Additional research development is needed to effectively manage in this environment and has broader implications for product portfolio management in the supply chain.
Abstract The present article analyzes the use of enterprise resources planning (ERP) packages to be part of the solution for the main issues related to the blockchain. ERP modules have been listed and tested against seven propositions, to check the ability to better use ERP for solving blockchain concerns. The research is based on the previous study of Saberi et al. (2019; 10.1080/00207543.2018.1533261) about the relationship between sustainable supply chain management and blockchain. We use structural equation modeling (SEM) to check the validity of the propositions. Based on the results, we propose recommendations for companies to sustainably improve their supply chain strategy with the use of blockchain, along with ERP modules. The results show that the selected companies would benefit from ERP and blockchain technology integration, as they both improve their sustainable corporate performance and integrate them more successfully in the supply chain. ERP and blockchain are to be used together to approach today's challenges and better prepare companies for the uncertain future.
Purpose In the era of digitalisation, blockchain has the potential to fundamentally change the architecture, engineering and construction (AEC) industry's workflow, trust and procurement environments. However, few studies have investigated blockchain adoption barriers in the AEC industry in detail. Therefore, the study aims to provide a comprehensive understanding of these barriers and their interdependent relationships in the context of the AEC industry. Design/methodology/approach Based on a review of the literature, industry reports and expert feedback, 11 barriers towards adopting the blockchain were identified. Then, the authors investigated the interdependencies amongst the factors by adopting a two-stage integrated interpretive structural modelling (ISM) and decision-making trial and evaluation laboratory (DEMATEL) method. Findings The findings show that the lack of information technology infrastructure (BC4) and legal and regulatory uncertainty (BC11) are the most prominent barriers towards blockchain adoption in the AEC industry. Practical implications The research contributes in providing a clearer understanding of related barriers and potential solutions for practitioners in this area. Subsequently, the identification of adoption barriers can enable an important knowledge foundation and suggest possible solutions for adopting blockchain techniques successfully and effectively in the AEC industry. Originality/value The study lays an essential research foundation for the effective adoption and use of blockchain in the AEC industry.
Rashid Amiri Ara, Klara Paardenkooper, Ron van Duin
Purpose This paper aims to propose a new blockchain system design to improve engineering, procurement and construction (EPC) companiesâ supply chain for constructing oil and gas infrastructure, by mitigating cost and time inefficiencies. Design/methodology/approach A case study analyses the supply chain of a sample EPC company. First, a literature review is conducted to explore the subject in academic literature. Second, information flows are mapped using responsible, accountable, consulted and informed analysis and cross-functional process mapping. Third, inefficiencies are identified. Fourth, the root causes of the inefficiencies are pinpointed using fishbone and five-times-why analysis. Fifth, a comparison is made between the linear and the blockchain information system via force-field analysis. Sixth, a specific blockchain system design is identified based on three external expert interviews. Finally, the new system is designed and a cost-benefit analysis is conducted. Findings Major cost and time inefficiencies in oil and gas infrastructure developments are caused by a poor information flow in the supply chain. The new blockchain system design is a feasible solution, reducing cost inefficiencies by 12.4% and operation lead-times by 36.5%. Research limitations/implications The confidentiality of the sample EPC companyâs information represents a limitation. Originality/value The research introduces a new blockchain system design, reducing cost and time inefficiencies in the project-development supply chain, including implementation processes.