IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i9p7421-d1137011.html
   My bibliography  Save this article

Investment Decision of Blockchain Technology in Fresh Food Supply Chains Considering Misreporting Behavior

Author

Listed:
  • Zhangwei Feng

    (School of Business, Ningbo University, Ningbo 315211, China)

  • Peng Jin

    (College of Finance & Information, Ningbo University of Finance & Economics, Ningbo 315175, China)

  • Guiping Li

    (School of Business, Ningbo University, Ningbo 315211, China)

Abstract

Effectively managing fresh food supply chains (FFSCs) has long been a big challenge owing to the complexity in practice. Adoption of innovative technologies, blockchain traceability (BT), and cold-chain preservation (CP) technology to improve the efficiency of FFSC management has attracted much attention practically and academically. Distinct from existing studies, this paper provides a specific insight into the application of these two technologies by taking into account their functions in restraining misreporting behavior with BT technology due to its traceability and transparency and improving the freshness with CP technology based on the investment in fresh preservation equipment. With this in mind, this paper develops game theoretic models to identify the conditions under which technologies are the optimal selection for the supplier/retailer. It assumes that the retailer is the Stackelberg leader and the supplier is the follower. The key findings show that: (1) with the foci to eliminate suppliers’ misreporting behavior and minimize the incentive fees, BT investment can increase prices and promote order quantities and demand; (2) only when the consumers demonstrate “appropriate” sensitivity to freshness, a win–win situation can be achieved without adoption of BT technology; and (3) suppliers are not keen to invest in BT or CP technology when the circulation time is short, while retailers prefer to invest in CP technology when the circulation time is long.

Suggested Citation

  • Zhangwei Feng & Peng Jin & Guiping Li, 2023. "Investment Decision of Blockchain Technology in Fresh Food Supply Chains Considering Misreporting Behavior," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:9:p:7421-:d:1137011
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/9/7421/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/9/7421/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Li, Guiping & He, Xiuli & Zhou, Jing & Wu, Hao, 2019. "Pricing, replenishment and preservation technology investment decisions for non-instantaneous deteriorating items," Omega, Elsevier, vol. 84(C), pages 114-126.
    2. Yunlong Yu & Tiaojun Xiao & Zhangwei Feng, 2020. "Price and cold-chain service decisions versus integration in a fresh agri-product supply chain with competing retailers," Annals of Operations Research, Springer, vol. 287(1), pages 465-493, April.
    3. Yan, Bo & Wang, Tao & Liu, Yan-ping & Liu, Yang, 2016. "Decision analysis of retailer-dominated dual-channel supply chain considering cost misreporting," International Journal of Production Economics, Elsevier, vol. 178(C), pages 34-41.
    4. Xiaodong Yang & Gangshu (George) Cai & Charles A. Ingene & Jihong Zhang, 2020. "Manufacturer Strategy on Service Provision in Competitive Channels," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 72-89, January.
    5. Shuai Yang & Yujie Xiao & Yong-Hong Kuo, 2017. "The Supply Chain Design for Perishable Food with Stochastic Demand," Sustainability, MDPI, vol. 9(7), pages 1-12, July.
    6. Xiaoyan Qian & Tava Lennon Olsen, 2020. "Operational and Financial Decisions Within Proportional Investment Cooperatives," Manufacturing & Service Operations Management, INFORMS, vol. 22(3), pages 545-561, May.
    7. Friedman, Nicola & Ormiston, Jarrod, 2022. "Blockchain as a sustainability-oriented innovation?: Opportunities for and resistance to Blockchain technology as a driver of sustainability in global food supply chains," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    8. Dutta, Pankaj & Choi, Tsan-Ming & Somani, Surabhi & Butala, Richa, 2020. "Blockchain technology in supply chain operations: Applications, challenges and research opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    9. Yunzeng Wang, 2006. "Joint Pricing-Production Decisions in Supply Chains of Complementary Products with Uncertain Demand," Operations Research, INFORMS, vol. 54(6), pages 1110-1127, December.
    10. Wang, Xiaojun & Li, Dong, 2012. "A dynamic product quality evaluation based pricing model for perishable food supply chains," Omega, Elsevier, vol. 40(6), pages 906-917.
    11. Wu, Xin & Nie, Lei & Xu, Meng & Yan, Fei, 2018. "A perishable food supply chain problem considering demand uncertainty and time deadline constraints: Modeling and application to a high-speed railway catering service," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 186-209.
    12. Luo, Na & Olsen, Tava & Liu, Yanping & Zhang, Abraham, 2022. "Reducing food loss and waste in supply chain operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).
    13. Qin, Yiyan & Wang, Jianjun & Wei, Caimin, 2014. "Joint pricing and inventory control for fresh produce and foods with quality and physical quantity deteriorating simultaneously," International Journal of Production Economics, Elsevier, vol. 152(C), pages 42-48.
    14. Yang, Lei & Tang, Ruihong, 2019. "Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 425-448.
    15. Zhang, Xuefeng & Li, Zhe & Li, Guo, 2023. "Impacts of blockchain-based digital transition on cold supply chains with a third-party logistics service provider," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    16. Besik, Deniz & Nagurney, Anna & Dutta, Pritha, 2023. "An integrated multitiered supply chain network model of competing agricultural firms and processing firms: The case of fresh produce and quality," European Journal of Operational Research, Elsevier, vol. 307(1), pages 364-381.
    17. Lodree Jr., Emmett J. & Uzochukwu, Benedict M., 2008. "Production planning for a deteriorating item with stochastic demand and consumer choice," International Journal of Production Economics, Elsevier, vol. 116(2), pages 219-232, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hongbo Tu & Mo Pang & Lin Chen, 2023. "Freshness-Keeping Strategy of Logistics Service Providers: The Role of the Interaction between Blockchain and Overconfidence," Mathematics, MDPI, vol. 11(17), pages 1-35, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fang Qiu & Qifan Hu & Bing Xu, 2020. "Fresh Agricultural Products Supply Chain Coordination and Volume Loss Reduction Based on Strategic Consumer," IJERPH, MDPI, vol. 17(21), pages 1-25, October.
    2. Yong He & Hongfu Huang & Dong Li, 2020. "Inventory and pricing decisions for a dual-channel supply chain with deteriorating products," Operational Research, Springer, vol. 20(3), pages 1461-1503, September.
    3. Yu, Yunlong & Xiao, Tiaojun, 2021. "Analysis of cold-chain service outsourcing modes in a fresh agri-product supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    4. Chen, Xu & Wang, Xiaojun, 2015. "Free or bundled: Channel selection decisions under different power structures," Omega, Elsevier, vol. 53(C), pages 11-20.
    5. Buisman, M.E. & Haijema, R. & Bloemhof-Ruwaard, J.M., 2019. "Discounting and dynamic shelf life to reduce fresh food waste at retailers," International Journal of Production Economics, Elsevier, vol. 209(C), pages 274-284.
    6. Pan, Fei & Zhou, Wei & Fan, Tijun & Li, Shuxia & Zhang, Chong, 2021. "Deterioration rate variation risk for sustainable cross-docking service operations," International Journal of Production Economics, Elsevier, vol. 232(C).
    7. Yan, Bo & Liu, Gaodi & Zhenyu, Zhang & Chang, Yan, 2020. "Optimal financing and operation strategy of fresh agricultural supply chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    8. Cong Zheng & Quangui Pang & Tianpei Li & Guizheng Wang & Yiji Cai & Lei Yang, 2019. "The Farmers’ Channel Selection and Sustainable Analysis under Carbon Tax Policy," Sustainability, MDPI, vol. 11(10), pages 1-24, May.
    9. Mangla, Sachin Kumar & Kazancoglu, Yigit & Ekinci, Esra & Liu, Mengqi & Özbiltekin, Melisa & Sezer, Muruvvet Deniz, 2021. "Using system dynamics to analyze the societal impacts of blockchain technology in milk supply chainsrefer," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    10. Cai, Xiaoqiang & Chen, Jian & Xiao, Yongbo & Xu, Xiaolin & Yu, Gang, 2013. "Fresh-product supply chain management with logistics outsourcing," Omega, Elsevier, vol. 41(4), pages 752-765.
    11. Qingren He & Shuting Li & Fei Xu & Wanhua Qiu, 2022. "Deep-Processing Service and Pricing Decisions for Fresh Products with the Rate of Deterioration," Mathematics, MDPI, vol. 10(5), pages 1-19, February.
    12. Lv, Fei & Xiao, Lei & Xu, Minghui & Guan, Xu, 2019. "Quantity-payment versus two-part tariff contracts in an assembly system with asymmetric cost information," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 60-80.
    13. Hezarkhani, Behzad & Demirel, Guven & Bouchery, Yann & Dora, Manoj, 2023. "Can “ugly veg” supply chains reduce food loss?," European Journal of Operational Research, Elsevier, vol. 309(1), pages 117-132.
    14. Zhou, Yu & Yan, Shuangqi & Li, Gendao & Xiong, Yu & Lin, Zhibin, 2023. "The impact of consumer skepticism on blockchain-enabled sustainability disclosure in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    15. Kusumastuti, Ratih Dyah & Donk, Dirk Pieter van & Teunter, Ruud, 2016. "Crop-related harvesting and processing planning: a review," International Journal of Production Economics, Elsevier, vol. 174(C), pages 76-92.
    16. Chen, Jing & Dong, Ming & Rong, Ying & Yang, Liang, 2018. "Dynamic pricing for deteriorating products with menu cost," Omega, Elsevier, vol. 75(C), pages 13-26.
    17. Yiping Jiang & Liangqi Chen & Yan Fang, 2018. "Integrated Harvest and Distribution Scheduling with Time Windows of Perishable Agri-Products in One-Belt and One-Road Context," Sustainability, MDPI, vol. 10(5), pages 1-13, May.
    18. Du, Heng & Lu, Ke, 2023. "Visualization service investment strategies for a self-operated fresh agricultural product e-tailer," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    19. Ming Luo & GuoHua Zhou & Hao Xu, 2022. "RETRACTED ARTICLE: Three-tier supply chain on temperature control for fresh agricultural products using new differential game model under two decision-making situations," Operations Management Research, Springer, vol. 15(3), pages 1028-1047, December.
    20. Shuai Yang & Yujie Xiao & Yan Zheng & Yan Liu, 2017. "The Green Supply Chain Design and Marketing Strategy for Perishable Food Based on Temperature Control," Sustainability, MDPI, vol. 9(9), pages 1-8, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:9:p:7421-:d:1137011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.