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Utilizing Fuzzy AHP in the Evaluation of Barriers to Blockchain Implementation in Reverse Logistics

Author

Listed:
  • Muhammad Hamza Naseem

    (School of Transportation and Logistics Engineering, Wuhan University of Technology, Wuhan 430063, China)

  • Jiaqi Yang

    (School of Transportation and Logistics Engineering, Wuhan University of Technology, Wuhan 430063, China)

  • Tongxia Zhang

    (School of Transportation and Logistics Engineering, Wuhan University of Technology, Wuhan 430063, China)

  • Waseem Alam

    (School of Transportation and Logistics Engineering, Wuhan University of Technology, Wuhan 430063, China)

Abstract

Digital technologies like blockchain, the Internet of Things, and smart warehouses have been developed due to the fourth industrial revolution, or “Industry 4.0.” Any business’ supply chain includes several stakeholders, including manufacturers, distributors, suppliers, and final consumers. The demand for firms to utilize these technologies to gain competitive advantages has intensified in the modern world due to rising worldwide rivalry. Additionally, the adoption of blockchain technology, in particular, can have a huge impact on a company’s reverse logistics, accelerating processes by decentralizing, tracking, and overseeing the delivery of items to final consumers. The goal of this study is to pinpoint those significant obstacles because several must be overcome for blockchain technology to be successfully implemented in reverse logistics. This study identified 16 impediments to the adoption of blockchain technology after a thorough analysis of the literature and expert opinion. The fuzzy AHP approach was used in this study to rank those barriers as this approach helps to address the complexity and uncertainty associated with decision-making in supply chain management and provides a more robust and reliable ranking of the barriers to blockchain adoption. A case study of Pakistan’s e-commerce industry was carried out. The results show that the high installation cost, stakeholders’ resistance to the blockchain, and the lack of top-management support are the critical success factors in blockchain adoption. From an industrial perspective, the study highlights the need for businesses to carefully evaluate the potential benefits and costs of adopting blockchain technology. It also underscores the importance of addressing the barriers to adoption to ensure successful implementation. By doing so, businesses can enhance their supply chain management and improve their overall competitiveness.

Suggested Citation

  • Muhammad Hamza Naseem & Jiaqi Yang & Tongxia Zhang & Waseem Alam, 2023. "Utilizing Fuzzy AHP in the Evaluation of Barriers to Blockchain Implementation in Reverse Logistics," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:7961-:d:1145911
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    References listed on IDEAS

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    Cited by:

    1. Herbert Jodlbauer & Manuel Brunner & Nadine Bachmann & Shailesh Tripathi & Matthias Thürer, 2023. "Supply Chain Management: A Structured Narrative Review of Current Challenges and Recommendations for Action," Logistics, MDPI, vol. 7(4), pages 1-19, October.
    2. Zhi Li & Fuhe Liang & Henan Hu, 2023. "Blockchain-Based and Value-Driven Enterprise Data Governance: A Collaborative Framework," Sustainability, MDPI, vol. 15(11), pages 1-15, May.

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