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Factors Affecting Organizations’ Resistance to the Adoption of Blockchain Technology in Supply Networks

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  • Daeheon Choi

    (College of Business Administration, Kookmin University, 77 Jeongneung-ro, Seongbuk-gu, Seoul 02707, Korea)

  • Chune Young Chung

    (School of Business Administration, College of Business and Economics, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 06974, Korea)

  • Thou Seyha

    (College of Business Administration, Kookmin University, 77 Jeongneung-ro, Seongbuk-gu, Seoul 02707, Korea)

  • Jason Young

    (College of Business, Washington State University, Pullman, WA 99164, USA)

Abstract

From a supply chain perspective, new technologies such as blockchain can improve the efficiency and competitiveness of logistics and increase customer satisfaction. Although blockchain technology has been lauded as a way for firms to build sustainable supply chain networks, the rate of acceptance of this technology remains low. Therefore, this study seeks to identify the factors that discourage firms from merging blockchain with the supply chain. Instead of providing further reasons for adopting blockchain technology, we try to understand what deters firms from adding blockchain to their operations. Following the deductive approach, a confirmatory factor analysis is conducted on pre-test questionnaires to test, improve, and verify the constructs (questions) to measure the hypothesized factors. A theoretical model is proposed based on the hypotheses, and structural equation modeling is applied. The results are estimated using the partial least squares approach and a sample of 83 respondents. Our findings based on our empirical data support most of our hypotheses. We find that various factors impede the adoption of blockchain technologies, including technological barriers, constraints rooted in organizations and the environment, and system-related governmental barriers. In addition, various factors are critical determinants of resistance to blockchain in the technological, organizational, and environmental dimensions.

Suggested Citation

  • Daeheon Choi & Chune Young Chung & Thou Seyha & Jason Young, 2020. "Factors Affecting Organizations’ Resistance to the Adoption of Blockchain Technology in Supply Networks," Sustainability, MDPI, vol. 12(21), pages 1-37, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8882-:d:434960
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    References listed on IDEAS

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    2. Sadawi, Alia Al & Madani, Batool & Saboor, Sara & Ndiaye, Malick & Abu-Lebdeh, Ghassan, 2021. "A comprehensive hierarchical blockchain system for carbon emission trading utilizing blockchain of things and smart contract," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    3. Feng, Yunting & Lai, Kee-hung & Zhu, Qinghua, 2022. "Green supply chain innovation: Emergence, adoption, and challenges," International Journal of Production Economics, Elsevier, vol. 248(C).
    4. Mohamed Amr Sultan & Tomaž Kramberger & Mahmoud Barakat & Ahmed Hussein Ali, 2023. "Barriers to Applying Last-Mile Logistics in the Egyptian Market: An Extension of the Technology Acceptance Model," Sustainability, MDPI, vol. 15(17), pages 1-25, August.
    5. Kwang O. Park, 2020. "A Study on Sustainable Usage Intention of Blockchain in the Big Data Era: Logistics and Supply Chain Management Companies," Sustainability, MDPI, vol. 12(24), pages 1-15, December.
    6. Geetika Jain & Archana Shrivastava & Justin Paul & Ronak Batra, 2022. "Blockchain for SME Clusters: An Ideation using the Framework of Ostrom Commons Governance," Information Systems Frontiers, Springer, vol. 24(4), pages 1125-1143, August.
    7. Niloofar Etemadi & Pieter Van Gelder & Fernanda Strozzi, 2021. "An ISM Modeling of Barriers for Blockchain/Distributed Ledger Technology Adoption in Supply Chains towards Cybersecurity," Sustainability, MDPI, vol. 13(9), pages 1-28, April.
    8. Gyutae Lee & Yunsik Kim, 2022. "Effects of Resistance Barriers to Service Robots on Alternative Attractiveness and Intention to Use," SAGE Open, , vol. 12(2), pages 21582440221, May.
    9. Saleem Malik & Mehmood Chadhar & Savanid Vatanasakdakul & Madhu Chetty, 2021. "Factors Affecting the Organizational Adoption of Blockchain Technology: Extending the Technology–Organization–Environment (TOE) Framework in the Australian Context," Sustainability, MDPI, vol. 13(16), pages 1-33, August.
    10. Komulainen, Ruey & Nätti, Satu, 2023. "Barriers to blockchain adoption: Empirical observations from securities services value network," Journal of Business Research, Elsevier, vol. 159(C).
    11. Shuke Fu & Jiabei Liu & Jiali Tian & Jiachao Peng & Chuyue Wu, 2023. "Impact of Digital Economy on Energy Supply Chain Efficiency: Evidence from Chinese Energy Enterprises," Energies, MDPI, vol. 16(1), pages 1-21, January.
    12. Ashish Dwivedi & Dindayal Agrawal & Sanjoy Kumar Paul & Saurabh Pratap, 2023. "Modeling the blockchain readiness challenges for product recovery system," Annals of Operations Research, Springer, vol. 327(1), pages 493-537, August.
    13. Abderahman Rejeb & Karim Rejeb & John G. Keogh & Suhaiza Zailani, 2022. "Barriers to Blockchain Adoption in the Circular Economy: A Fuzzy Delphi and Best-Worst Approach," Sustainability, MDPI, vol. 14(6), pages 1-23, March.
    14. Satyabrata Aich & Sushanta Tripathy & Moon-Il Joo & Hee-Cheol Kim, 2021. "Critical Dimensions of Blockchain Technology Implementation in the Healthcare Industry: An Integrated Systems Management Approach," Sustainability, MDPI, vol. 13(9), pages 1-17, May.

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