Marjaneh Jahangiri Lahkani, Shouyang Wang, Mariusz UrbaĆski, Mariya Egorova
Information technology advancements integrated with the e-commerce supply chain allow participants in the business process to effectively work with large volumes of data and control transactions. To improve the profitability and competitiveness of e-commerce companies, a blockchain solution was incorporated into the global B2B (Business-to-Business) supply chain. This technology simplified the transaction process by providing all participants in the sustainable B2B buying process with the same data about the trade. Overall, the use of blockchain improved the efficiency of logistics and digital documentation which reached 74% and 75%, respectively. The main advantage of using blockchain is that it creates a decentralized database that is secure. In addition, it increases the speed of payment and the reliability and transparency of data transfer. Further research may focus on the use of blockchain in green logistics to improve environmental sustainability in the e-commerce supply chain.
Purpose This paper aims to investigate how blockchain has moved beyond cryptocurrencies and is being deployed to enhance visibility and trust in supply chains, their limitations and potential impact. Design/methodology/approach Qualitative analysis are undertaken via case studies drawn from food companies using semi-structured interviews. Findings Blockchain is demonstrated as an enabler of visibility in supply chains. Applications at scale are most likely for products where the end consumer is prepared to pay the premium currently required to fund the technology, e.g. baby food. Challenges remain in four areas: trust of the technology, human error and fraud at the boundaries, governance, consumer data access and willingness to pay. Research limitations/implications The paper shows that blockchain can be utilised as part of a system generating visibility and trust in supply chains. Research directs academic attention to issues that remain to be addressed. The challenges pertaining to the technology itself we believe to be generalisable; those specific to the food industry may not hold elsewhere. Practical implications From live case studies, we provide empirical evidence that blockchain provides visibility of exchanges and reliable data in fully digitised supply chains. This provides provenance and guards against counterfeit goods. However, firms will need to work to gain consumer buy-in for the technology following repeated past claims of trustworthiness. Originality/value This paper provides primary evidence from blockchain use cases âin the wildâ. The exploratory case studies examine application of blockchain for supply chain visibility.
The research and thinking pertaining to blockchain have thus far focused on cryptocurrency and Bitcoin. However, there is increased interest in using the technology to solve operational challenges in manufacturing and service supply chains. In this study, we introduce a new implication of using blockchain technology and propose two unique contributions. First, we introduce the notion of computational costs (measured in units of gas) as an essential mechanism for completing operational transactions in the blockchain environment. Second, we discuss the use of smart contracts and their influence on operational transactions. To investigate the link between blockchain transaction and computational costs, this study uses an experimental methodology. We develop and implement a fully functional virtual public blockchain to store, validate, and maintain transactions. The methodology provides a process to measure the computational costs, frequency, and intensity of transactions. This research contributes to conceptual research on the blockchain implementation paradigm. Its novelty stems from the identification of computational costs for operational transactions and use of an experimental methodology. This research provides managers an insight into the design of smart contract transactions in a supply chain from a cost perspective.
Blockchain has become very popular as the underlying technology powering Bitcoin. However, the benefits behind this technology further surpass just supporting cryptocurrencies. Blockchain can be defined as a digital ledger that allows to capture transactions conducted among several parties on real-time and serves as a decentralized database where each participant keeps an identical copy of the ledger. The appeal behind blockchain resides on its peer-to-peer network infrastructure along cryptographic capabilities. This combination enables users to conduct transactions without a trusted third-party intermediary. Benefits in accounting are even more promising as blockchain will provide a triple entry accounting system where all transactions are immutable and have been time stamped, recorded on real-time and encrypted The purpose of this paper is to review extant research on this technology and assess the impact of blockchain in the audit profession, including new risks, change in procedures and additional opportunities.
The advancements in the fields of IT and robotics are provoking the fourth industrial revolution and transforming our economy toward the machine economy. Billions of economically autonomous machines engaging in business relationships raise novel requirements regarding security, privacy, regulation, business models, trustful transaction processing, and interoperability. A technology that promises to provide solutions to these challenges is blockchain. Neither practice has spawned productive solutions nor has research been able to assess the phenomenon profoundly. First investigations focus on specific use cases, but existing work does not examine the overall impact and role of blockchain in the machine economy. However, this knowledge is of particular importance for various stakeholders. In this article, we address this research and knowledge gap by conducting a study with 50 blockchain and machine economy experts. We establish a sound research fundament by following a literature assessment, group discussion, interviews, and qualitative data analysis. As main research instrument, we chose a Delphi study, which has a long-proven record of application in prospective studies and has been applied to examine future premises, estimates, and challenges across nearly all disciplines. This allows us to derive six key findings leading to a transparent picture of blockchain's role in the machine economy.
Companies trying to build new solutions using blockchain are confronted with\na plethora of available concurrent technologies that have many control knobs\nwhich require fine-tuning by experts. Exiting studies that build decision\nmodels for blockchain adoption or selection lack an automated way to use\nnon-functional requirements to provide recommendations. In this paper, we build\na knowledge base for blockchain solutions by analyzing whitepapers and studies,\nbut also our benchmark results performed in a controlled environment. Then, we\nimplement a Multi-Criterion Decision Analysis method to determine the most\nsuitable blockchain solution from companies provided requirements and\npreferences. Finally, we illustrate our approach by running the decision\nprocess on a realistic supply-chain use case. This paper provides a rationale\nfor blockchain deployment choices. While still limited in scope, we plan to\ninclude more blockchain alternative and more flexible requirements inputs in\nfuture work.\n
Purpose The main objective of this paper is to justify the implementation of blockchain (BC) over the traditional method deployed in the supply chain (SC) after using the fuzzyâanalytic network process (fuzzy-ANP) application. Over the past two decades, the overall product cost is affected by the SC at a global level. Organizations are working on their existing SC for improving their performance. BC technology is a newly emerging technology and magnetizes the attention of researchers and industrialists. This technology is still at the initial stage, and only little investigation is available in the literature and it has not been much investigated by researchers. Design/methodology/approach Literature and expert opinion interpretation in BC characteristics are further analyzed and modeled using fuzzyâinterpretive structural modeling (fuzzy-ISM), fuzzy-MICMAC and fuzzy-ANP. The combined approach of both fuzzy-ISM and fuzzy-MICMAC is applied to identify the common drivers to integrate the BC technology in the light of efficient supply chain management (SCM). Findings Comparative analysis between traditional and BC-based supply chain (BCSC) using fuzzy-ANP is carried out, considering the common driving characteristics. The proposed integrated (combined) approach of fuzzy-ISM, fuzzy-MICMAC and Fuzzy-ANP found that integration of BC with SCM is better prioritized than traditional supply chain management (TSCM). The findings in the article endorse that the TSCM can be made efficient by integrating the BC technology considering five most driving characteristics, namely, data safety and decentralization, accessibility, documentation, data management and quality. Originality/value The current proposed research work identifies 12 characteristics after studying numerous literature reviews and having a discussion with SC experts with knowledge of BC. The integrated approach of fuzzy-ISM and fuzzy-MICMAC is implemented here. After that, fuzzy-ANP is used to give ranking among BCSCM and TSCM. The study carried out in this article motivates industries to implement BC in their SC system. It will reduce the transaction cost, documentation work, save time and eliminate human error at the national and international levels. The common characteristics identified in this proposed work would help in managerial decisions for the adoption of BC to ensure that the system becomes more transparent, easily traceable and finally improve the performance.
Purpose Blockchain technology has extended beyond the border of cryptocurrency and taken hold in various areas of international business. This study aims to analyze the impacts of blockchain on international business and the resulting challenges and implications for global governance. Design/methodology/approach The analysis of multiple blockchain applications in international finance, banking and insurance, supply chain management and logistics and marketing and advertising shows that the use of blockchain in international business has different impacts on global governance. Findings Although the protection of property rights can be improved and transaction costs can be reduced, the effects on other functions of global governance are more ambivalent. Research limitations/implications As a recommendation for future studies, the need for more multidisciplinary and empirical research is proposed. Practical implications As the technology disrupts business activities, it also affects the governance of these activities on a global scale. Suggestions for the future regulation of blockchain applications in international business are developed. Originality/value Blockchain technology has extended beyond the border of cryptocurrency and taken hold in various areas of international business. This study aims to analyze the impacts of blockchain on international business and the resulting challenges and implications for global governance. The application of blockchain technology in international business across multiple industries is explored in order to draw conclusions about its impacts on global governance. It is determined that blockchain brings about both challenges and benefits for global governance.
Yongjian Li, Lu Liu, Lipan Feng, Wen Wang · 5 authors
ABSTRACT Trade credit finance (TCF), retailer independent finance (RIF), and partial credit guarantee (PCG) finance are all important financing tools for capitalâconstrained retailers. Risk aversion has a significant impact on financing, but it is difficult to measure. This research investigates the manufacturer's financing provision strategies considering risk aversion and capital market competition. First, an ordinary least squares method with conditional value at risk criteria is proposed to measure the risk attitude of decisionâmakers. Second, the equilibrium mode of financing provision and impacts of risk aversion and the retailer's initial capital are analyzed. Third, a laboratory experiment and numerical analysis are conducted to verify the risk aversion estimation method and other theoretical results. We draw the following conclusions. First, the equilibrium financing provision mode changes with the degree of risk aversion and retailer's initial capital. Although the manufacturer prefers TCF and PCG to RIF, the retailer chooses the RIF mode when its initial capital is low. A variable parameter guarantee mechanism is proposed to encourage more retailers to choose PCG instead of RIF. Second, the riskâaverse financing system realizes superâcentralization (i.e., utility in the decentralized system is larger than that in the centralized system) when the manufacturer is less risk averse than the other participants. A Paretoâoptimality mechanism is designed to realize superâcentralization and coordinate the decentralized financing system. This research provides financing providers with practical guidance on the efficient implementation of supply chain financing.
Blockchain â also known as distributed ledger â technology is set to revolutionise data and business process management and transactions. Blockchain adoption, pioneered initially as a financial tec...
Dnyaneshwar Jivanrao Ghode, Vinod Yadav, Rakesh Jain, Gunjan Soni
Purpose Blockchain technology (BT) is setting world-shattering standard in all type of transactions in business. BT has the prospective to drastically transform supply chain (SC). The main challenge is to enhance trust among the SC stakeholders. This paper aims to identify and prioritize the factors and its challenges that influence the adoptability of BT in SC. The prioritization of these factors will be helpful to the practitioners to decide the strategy of implementing the BT in SC. Design/methodology/approach The factors influencing adoption of BT are identified from the review of literature and expert opinion is used to rank the factors influencing the adoptability of BT in SC using grey relational analysis (GRA). Findings We identified and prioritized key factors: inter-organizational trust and relational governance as organizational challenge, data transparency and data immutability as technological challenge, interoperability and product type as operational challenge and social influence and behavioral intention as social challenge that influences adoptability of BT in SC. Originality/value The priority of these factors will guide future researchers and industry practitioners to plan rational and financial strategy for implementing BT in SC.
Despite the anticipated benefits and the numerous announcements of pilot cases, we have seen very few successful implementations of blockchain technology (BCT) solutions in supply chains. Little is empirically known about the obstacles to blockchain adoption, particularly in a supply chain's interorganizational setting. In supply chains, blockchains' benefits, for example, BCTâbased tracking and tracing, are dependent on a critical mass of supply chain actors adopting the technology. While previous research has mainly been conceptual and has lacked both theory and empirical data, we propose a theoryâbased model for interorganizational adoption of BCT. We use the proposed model to analyze a unique inâdepth revelatory case study. Our case study confirms previous conceptual work and reveals a paradox as well as several tensions between drivers for and against (positive and negative determining factors, respectively) of BCT adoption that must be managed in an interorganizational setting. In this vertical context, the adoption and integration decision of one supply chain actor recursively affects the adoption and integration decisions of the other supply chain actors. This paper contributes midrange theory on BCT in supply chain management (SCM), future research directions, and managerial insights on BCT adoption in supply chains.
Sebastian Kummer, David M. Herold, Mario Dobrovnik, Jasmin Mikl · 5 authors
Potential blockchain applications in logistics and transport (LSCM) have gained increasing attention within both academia and industry. However, as a field in its infancy, blockchain research often lacks theoretical foundations, and it is not clear which and to what extent organizational theories are used to investigate blockchain technology in the field of LSCM. In response, based upon a systematic literature review, this paper: (a) identifies the most relevant organizational theories used in blockchain literature in the context of LSCM; and (b) examines the content of the identified organizational theories to formulate relevant research questions for investigating blockchain technology in LSCM. Our results show that blockchain literature in LSCM is based around six organizational theories, namely: agency theory, information theory, institutional theory, network theory, the resource-based view and transaction cost analysis. We also present how these theories can be used to examine specific blockchain problems by identifying blockchain-specific research questions that are worthy of investigation.
Mohammad Raihanul Hasan, Shiming Deng, Mollah Aminul Islam, Muhammed Zakir Hossain
Purpose The purpose of this study is to evaluate the effect of blockchain technology on firmsâ operational efficiency in the context of China. Design/methodology/approach The authors use panel data for blockchain-based companies listed on stock exchanges in China (Shanghai, Shenzhen and Hong Kong) between 2014 and 2018. The operational efficiency of firms that deploy blockchain technology is evaluated using ordinary least squares and system generalized method of moments estimation. Findings Results suggest that companiesâ current year performance exceeds the previous year performance because of blockchain deployment in firmsâ operations. Firms with higher financial leverage and return on assets reap more benefits from blockchain. Larger and older firms benefit less from blockchain implementation. Stochastic frontier estimation suggests that, on average, firms attain a 57.76 per cent technical efficiency level, or, put differently, they operate 42.24 per cent below their maximum level of potential output. Originality/value Blockchain can benefit firms in terms of consensus, security and trust, spurring the evolution of a new form of organizational dynamics. This study explores the theory of transactional cost analysis under blockchain technology. In addition, this study hypothesizes and empirically demonstrates the significant impacts of blockchain technology on corporationsâ operational efficiency, using audited, externally reported financial data. Industry professionals can reap benefits from this research by noticing the magnitude of changes in firmsâ financial parameters attributable to blockchain adoption.
Zhi Li, Hanyang Guo, Ali Vatankhah Barenji, W.M. Wang · 6 authors
Due to the rapid development of information technology, supply chain network is evolving, which involves a higher level of interdependence between organisations. Conventional production capability evaluation relies on centralised approaches with limited sharing of performance and evaluation data. Besides, traditional evaluation methods are mainly based on subjective manual operation using limited data. In this paper, we propose a production capability evaluation system by incorporating Internet of Things (IoT), machine learning and blockchain technology for supply chain network. It contributes to achieving real-time data collection and automated enterprise production capability evaluation mechanism. Besides, blockchain technology is adopted to enable open and decentralised data storage and sharing, provide fair and automatic trading of data. The proposed system is evaluated through a simulation experiment. It demonstrated how to utilise the proposed system to choose suitable upstream enterprises. The successful development of the system could help to enhance production efficiency, reduce risk and provide a reasonable and more sustainable production management in supply chain network.
Christian F. Durach, Till Blesik, Maximilian von DĂŒring, Markus Bick
Blockchains, a disruptive technology with potentially many applications in modernâday supply chain (SC) transactions, have not been adequately reflected by theory. Researchers and business managers must understand where and when blockchainsâ application may be expected and investigated. The present study clarifies the discussion about blockchain application areas (BAAs) in SC transactions and their relevance for businesses. This study combines the findings from three methodological approaches: an extant literature review, a Delphi study, and a survey of 151 German machinery and equipment sector business managers. The results further our understanding of blockchainsâ business opportunities among SC transactions and verify and extend Iansiti and Lakhaniâs ( Harvard Business Review 2017; 95: 118) blockchain adoption framework. Verified customer reviews and product quality certification are identified as the most relevant blockchain usages in SC transactions. Interestingly, we anticipate the least likely adoption of blockchains to occur for documentâsigning processes despite arguments within the literature that suggest otherwise. Two newly identified BAAsâlogistics and delivery systemsâand tokenâcurated registries rank among the top four most relevant. The present studyâs valuation of BAAs advances theory and will likely affect business strategies by indicating where, when, and why businesses should participate in blockchain networks.