The use of distributed ledger-based smart contracts in supply chain operations offers promising opportunities for process automation, improved data accessibility, and enhanced transparency. Despite technical progress, there remains a lack of comprehensive understanding regarding their implications. This scoping review consolidates current knowledge to examine how smart contracts affect supply chain structures and operations. The results highlight their potential to reduce intermediaries, foster trust, lower transaction costs, and support the shift towards decentralised and collaborative supply networks. The study contributes by identifying implementation challenges and synthesising both benefits and barriers. It also presents actionable recommendations, including aligning organisational processes, developing standards, and addressing behavioural factors. Finally, a research agenda is proposed to guide future studies and close gaps in empirical and conceptual understanding.
The dissertation explores theoretical and practical implications of smart contracts in supply chains through four studies. It examines technology adoption, trust dynamics, transaction costs, and applications in virtual supply networks. Building on literature and empirical data, the work highlights both opportunities and challenges of this technology and provides actionable insights for practitioners as well as contributions to advancing existing theoretical frameworks.
We study the optimal channel selection and blockchain strategy of a capital-constrained manufacturer who sells the green product through an online platform. Blockchain technology (BCT) can be used by the manufacturer to increase consumer confidence in the value of green product. We first show that the manufacturerâs financing strategy is characterized by two thresholds that depend on the manufacturerâs channel selection and blockchain strategy. BCT increases wholesale and retail prices, but it does not always increase product greenness and demand. We find that the manufacturerâs ability to bear the blockchain cost correlates with his financial standing as well as the platformâs operation mode. Furthermore, we show that the agency mode should be selected by the manufacturer only when the commission rate falls below a specified threshold. We also examine the impact of commission rate on the platformâs operational strategy and channel consistency. Furthermore, under the agency model, we show that there is always a âwin-winâ situation in green cost-sharing cooperation regardless of the manufacturerâs financial state. However, such a âwin-winâ situation only exists in financing circumstances under the reselling mode. Finally, the extended model explores the relationship between channel strategies and risk preferences of the manufacturer under demand uncertainty.
This study explores the potential of blockchain technology to optimize trade finance processes and to address inefficiencies and fraud risks in centralized systems that contribute to a growing global trade finance gap, particularly affecting SMEs. Through documentary analysis and the case of Morocco's OCP Group, with insights for practitioners, we explore the benefits and challenges of integrating blockchain into trade finance. Our findings suggest a hybrid solution integrating blockchain into existing infrastructure, relying on both off-chain and on-chain governance mechanisms in smart contracts. This approach aims to bridge the gap between traditional and blockchain solutions in trade finance and discusses the potential for a more pragmatic way forward for the industry.
The occurrence of the fourth industrial revolution (Industry 4.0) has led many industries to the path of adopting new technologies. Such technologies include blockchain, artificial intelligence (AI), and the Internet of Things (IoT). Blockchain creates the opportunity to access data and information in a decentralized manner, resulting in increased customer satisfaction. This study develops a smart newsvendor model of the food industry with consignment contracts and blockchain technology. Under a consignment policy, the central division (manufacturer) can utilize the retailerâs warehouse for storage. The producer may also have the opportunity to share the holding cost with retailers without losing the ownership of products. The main contribution of this study is to analyze the profitability of the retailing and supply chain when the blockchain technology is implemented by the food industry. Moreover, a thorough investigation of profit and loss is conducted under a consignment contract when uncertain demand is encountered. This study mainly concerns perishable food items, and increasing volatility in market demand. Two cases of probabilistic uncertainty are considered, including uniform and normal distribution. The key investigations of this study are presented in terms of (a) the effect of adopting blockchain on market demand for the food industry, (b) analysis of company profitability for perishable food items and demand uncertainty, and (c) the effect of the consignment contract under blockchain technology in the food industry. Finally, this research develops an optimization tool to numerically analyze the effect of several factors of the blockchain technology on demand. Moreover, the optimal values of the design variables and the resulting maximum profitability provide valuable insights that support industry in formulating effective policies and making informed strategic decisions.
In cryptocurrency market, smart contracts are used to transfer billions of dollars, and risk analysis of these contracts is crucial for ensuring their security in this rapidly evolving digital landscape. This study uses eight key risk criteria of smart contracts from the literature. The importance of these criteria was determined through a survey of experts by applying neutrosophic PIPRECIA method to weigh experts' opinion significance based on their knowledge and experiences. This leads to improve the credibility of the risk analysis process. The risk of nine specific smart contracts was then evaluated by applying a hybrid of the DEMATEL and PIPRECIA multi-criteria methods to weigh the evaluation criteria and calculate the security score for each smart contract. The security scores assigned to each smart contract provide valuable insights for traders and investors in the cryptocurrency market, highlighting the contract's robustness and reliability in the context of smart contract risks.
Indian economy is highly dependent on its agricultural sector which is a diverse sector and the present supply chain of agricultural products is divided with multiple people involved causing inefficiency and lack of transparency. The work involved aims to build a supply chain which addresses the traceability and transparency issues. For tracking product right from its origin to market a blockchain-based platform helps with secure transactions with every intermediary involved in the supply chain. Each product is assigned a unique code with which the customer can track the entire journey of the product and will be able to verify whether the product is authentic. The novelty of the solution is the use of blockchain technology which ensures end to end transparency. The solution enhances data integrity, reduces fraud and builds trust among the customers for the product they are purchasing. For successful implementation performance parameters such as transaction speed which ensures timely updates, data integrity and security which protects against unauthorized access and tampering are looked after. The approach is relevant to real-world scenarios by providing consumers with reliable information about product origins and handling. The goal is to establish a distributed ledger that will increase transparency by being available to all network users.
Katherine Kaneda Moraes, Gilberto Miller Devós Ganga, Moacir Godinho Filho, Luis Antonio de Santa-Eulålia · 5 authors
Purpose The integration of blockchain technology (BT) in supply chain management (SCM) is at the forefront of technological advancements, yet it faces significant barriers that hinder its widespread adoption. This study aims to delve into these challenges, employing the diffusion of innovations (DOI) theory to systematically investigate and propose a strategic framework for overcoming the technological barriers to BT adoption within SCM. Design/methodology/approach Through a comprehensive systematic literature review (SLR) of 155 publications, complemented by rigorous content analysis and expert interviews, this research identifies and categorizes 16 primary technological barriers, including scalability and privacy issues, that impede BT integration. Findings The proposed framework, informed by DOI theory, outlines tailored strategies across three critical adoption stages: initiation, where the focus is on mitigating high energy consumption and scalability issues; adoption decision, emphasizing the formulating international standards for blockchain architecture, embedding abstraction layers within software projects; and implementation, concentrating on enhancing security, interoperability and system efficiency. Originality/value This research contributes significantly to both academic literature and practical applications. Academically, it extends the DOI theory within the SCM context and enriches the blockchain literature by providing a nuanced understanding of the specific barriers to BT adoption. Practically, it offers a roadmap for industry practitioners, delineating actionable strategies to navigate the adoption process effectively. This study not only bridges the gap between theoretical insights and practical implementations but also serves as a vital resource for policymakers and standard-setting bodies in facilitating and regulating BT adoption in SCM, thereby fostering innovation and competitive advantage in the marketplace.
This paper examines the effect of overconfidence on financial decisions in a capital-constrained distribution channel where an upstream supplier with sufficient working capital produces goods for a downstream retailer who has limited working capital and may request trade credit from the upstream supplier. We obtain several interesting results. First, in a centralized financially constrained channel (CFCC) setting, we show that overconfidence has the results that both the optimal order quantity is tied to the mean of the uncertain market demand and that the supply chain is worse off. Second, in a decentralized financially constrained channel (DFCC) setting, the optimal order quantity with overconfidence is either higher or lower than that without overconfidence. When the retailer needs to ask for trade credit from the supplier, overconfidence means that the retailerâs order quantity is less affected by the wholesale price. We further numerically show that under market demand uncertainty, overconfidence may benefit a DFCC composed of an overconfident supplier and retailer. We also analyze the impacts of varying overconfidence levels on our results and find that the retailer may benefit when the retailer is more overconfident than the supplier.
This research has developed the theoretical framework that outlines the application of blockchain and smart contracts for enhancing supply chain transparency. The framework here builds in the concept of decentralization and immutability of the blockchain technology to improve accountability, auditability and responsiveness within supply chains. The framework helps to acquire real-time visibility over different processes, control fraud, increase the accuracy of the data, and optimize several procedures as much as possible by implementing the mentioned smart contacts. When the framework is adopted, the various advantages include the efficiency gain in the processing of different transactions and the increased accuracy in the data handling capacity as well as enhanced compliance to the set standard regulatory compliances. Despite this, questions like scalability of the concept, compatibility issues and synergism of the players in the value web remain problematic. In a broader perspective, this study adds to the current literature on the integration of blockchain technology in managing supply chain and offers all-important pointers to the practising managers.
On that consideration, this investigation examines SCF as a concept and how it can be implemented within blockchain-enabled supply chain systems to increase effectiveness, minimize risk, and provide greater visibility into supply chain transactions. This study reveals the practical advantages of applying a decentralized and tamper-proof ledger of blockchain in the spheres of transaction processing, specifically, times of completing basic transactions, times of the paymentsâ cycles, and decreasing the number of errors and discrepancies. Notable results among them include cutting the businessâs transaction processing time by half, payment cycle time by 71% in addition to reporting an 87% reduction in data entry mistakes. They concur with previous research supporting the disruptive prospect of blockchain technology in SCM and SCP, adding more research effort and investment in this area is warranted in order to fully exploit its advantages.
Bo LĂŒ, Lijie Fan, Yuanzhao Tang, Sandun C. Perera · 5 authors
Traditional information structures within shipping supply chain platforms often grapple with inefficient decision-making processes, hindering overall efficiency. Blockchain is increasingly utilised in shipping platforms, employing decentralised distributed ledgers to transform the information architecture of supply chains, which are typically characterised by centralised management and fragmented data. However, the ceasing of operations such as TradeLens and 300cubits due to high operating costs, user privacy concerns, and multiple bets also makes investing in blockchain an obscure choice. Motivated by this dilemma about the value of blockchain to platforms, we investigate the impact of user behaviour on blockchain investments in shipping platforms through a game-theoretic model of heterogeneous platform competition. First, our results show that the relationship between the intrinsic value and the option value of blockchain is a crucial determinant of its applicability to platforms. Second, we establish that, although the network effects enhance platform profits, higher network effects exacerbate price competition and hinder the value of the blockchain. Moreover, multi-homing can weaken the strategic dependency between platforms and users, thereby reducing the profitability of platforms. Finally, it is observed that blockchain investment in shipping platforms brings more consumer surplus and social welfare, with moderate network effects and multi-homing behaviour.
Yavuz Selim BalcıoÄlu, Ahmet Alkan Ăelik, Erkut AltındaÄ
The integration of blockchain technology into supply chain management (SCM) has emerged as a revolutionary force transforming traditional business operations. This study uses bibliometric analysis on 1069 articles from the Scopus database, using text mining and Python to uncover predominant themes and research trends at the intersection of blockchain and SCM. The key findings revealed three main thematic groups: âblockchain to improve transparency and traceability in SCMâ (supported by 323 articles), âimpact of blockchain on supply chain efficiency and cost reductionâ (295 articles), and âblockchain-enabled supply chain resilienceâ (191 articles). Furthermore, text mining highlighted prominent themes such as âdecentralized supply chain networksâ (204 articles), âsmart contracts for automated processes in SCMâ (234 articles), and âblockchain for sustainable supply chain practicesâ (227 articles). The inclusion of sustainability themes reflects the growing importance of environmentally conscious strategies within supply chains, driven by the capacity of blockchain to reduce waste, and promote resource efficiency. The study identifies critical literature gaps, advocating for further exploration of the socio-economic impacts of blockchain on SCM. The topic extraction suggests new directions for SCM theory, while the role of blockchain in fostering sustainable and ethical supply chains is underscored. Practically, blockchain and IoT emerge as pivotal in the advancement of SCM, with text mining offering industry foresight and emphasizing blockchain-driven resilient strategies. Limitations include reliance on a single database and the recommendation that future studies incorporate diverse sources and qualitative insights. The findings provide a roadmap for academics and practitioners, highlighting potential avenues in SCM, especially in the context of sustainable and ethical practices.
Supply chain traceability is a critical aspect of modern business operations, and blockchain technology has emerged as a promising solution to enhance traceability in supply chain management. However, the effective application of blockchain faces various challenges and limitations. This study aims to investigate how blockchain technology can address these challenges and improve traceability within supply chains. Employing a systematic literature review combined with interpretative structural modeling (ISM), we comprehensively assess and classify the literature on blockchain-enabled supply chain traceability. Our exploratory research approach delves into the contributions of blockchain technology and identifies key factors that enhance traceability. We adopt a mixed-methods approach, incorporating both secondary and primary data to ensure robust analysis. Our study addresses essential questions regarding the application, advantages, limitations, challenges, integration with other technologies, and future potential of blockchain in supply chain traceability. Through a systematic review and the ISM technique, we identify crucial levels and factors necessary for leveraging blockchain technology effectively. Our findings underscore the importance of a robust infrastructure, cutting-edge technology, and significant initial investment in implementing blockchain for supply chain traceability. This research offers a comprehensive understanding of the factors and their levels, providing valuable insights for industry professionals and academic researchers. By laying a solid foundation for informed decision-making and further exploration into the potential of blockchain-enhanced supply chain traceability, our study contributes to advancing knowledge in this crucial area of business operations.
Purpose This study aims to examine the performance implications of blockchain implementation in the supply chain and explore how blockchain functions and supply chain processes of blockchain implementation moderate the effect on firm performance. Design/methodology/approach Using 220 blockchain implementations announced between January 2015 and December 2022, we use the event study methodology to estimate the effects of blockchain implementation on the firm value. Regression analyses are conducted to examine the moderating effects of blockchain functions and supply chain processes. Findings First, there is a positive and statistically significant relationship between blockchain implementation in the supply chain and firm value. Second, we find that abnormal returns from blockchain implementation are higher when used with blockchainâs contract automation function and applied in downstream processes, supporting the moderation effects. Originality/value The study provides empirical evidence on the effects of the blockchain implementation on firm performance, taking into account the complexity of blockchain functions and supply chain processes. It enriches the current understanding of how blockchain implementation in the supply chain contributes to firm value.
Asaduddin Abdullah, Arif Satria, Heti Mulyati, Yandra Arkeman · 5 authors
The COVID-19 pandemic has revealed weaknesses in traditional supply chain finance systems, highlighting the need for digital change. Blockchain technology, with its ability to create secure and transparent records of transactions, offers a potential solution. This study uses bibliometric analysis and a literature review to examine research on blockchain-enabled supply chain finance, drawing on a database of 446 articles from ScienceDirect and Scopus. The findings show a growing interest in how blockchain can improve transparency, efficiency, and security in supply chain finance, addressing challenges like information asymmetry. This study suggests future research should focus on real-world applications of blockchain, how it can be used with other technologies, regulations and governance, and the social and environmental impacts of blockchain-based supply chain finance. This research also highlights the different priorities of the Global North and South in blockchain-enabled supply chain finance. The North focuses on efficiency and traceability, while the South emphasizes adding value and transparency. A lack of research on fair pricing, especially in the Global South, points to a critical gap that future research needs to address to ensure fairness in global trade.
The integration of smart contracts into decentralized applications (DApps) presents significant advancements in supply chain management. This paper demonstrates the use of formal verification for smart contracts within a practical DApp, specifically designed for the olive oil supply chain. It provides actionable guidance for developers and software designers on how to express and verify functional properties using verification tools such as SMTChecker and Certora Prover.
Background. A smart contract is a computer program enclosing the terms of a legal agreement between two or more parties which is automatically verified and executed via a computer network called blockchain. Once a smart contract transaction is completed the blockchain is updated and the transaction cannot be changed anymore. This implies that any error codified in the smart contract program cannot be rectified. Therefore, it is of vital importance that developers of smart contracts properly exploit error handling to prevent issues during and after the contract execution. Existing programming languages for smart contracts, support developers in this task by providing a set of Error Handling (EH) features. However, it is unclear the extent to which developers effectively use EH in practice. Aims. Our work aims to fill this gap by empirically investigating the state of practice on the adoption of EH features of one of the most popular programming languages for smart contracts, namely Solidity. Method. We empirically analyse the usage of EH features in 283K unique open-source Solidity smart contracts for the Ethereum blockchain. Results. Our analysis of the documentation of the different versions of Solidity coupled with the empirical evaluation of the EH uses and misuses found in real-word smart contracts, indicate that, among other things, Solidity EH features have been changing frequently across versions, and that the adoption of most of the Solidity EH features has been limited in practice. However, we observe an upward trend in the usage of the require EH feature, which is specifically designed for smart contract development. Conclusions. The insights from our study could help developers improve their EH practice as well as designers of smart contract programming languages to equip their language with appropriate EH features.