The adoption of blockchain technology to support supply chain traceability in the agri-food industry: firm-level evidence from Italy

The European Union (EU) emphasises the need to strengthen the development and adoption strategic technologies to safeguard the competitiveness and future growth of European member countries. Blockchain is a prime example of an advanced digital technology with great potential to transform the economy and society, garnering substantial attention at both European and Italian levels. In recent years, blockchain technology has been recognised for its ability to enhance traceability and transparency in supply chains, particularly in the agri-food sector. However, empirical evidence on its development and adoption for supply chain traceability remains scarce. Given these considerations, this paper investigates the extent to which blockchain technology is adopted by Italian agri-food companies and explores the factors associated with its adoption. To achieve this, we collected data on companies implementing blockchain technology in the agri-food sector using both primary and secondary sources. Primary data were obtained through web scraping of company websites to identify firms leveraging blockchain technologies. Secondary data were gathered from existing databases mapping companies that received public subsidies for blockchain adoption. Our findings reveal that blockchain technology is not as widely adopted as anticipated despite its potential advantages for agri-food supply chain traceability. Using econometric techniques, we analysed the factors associated with blockchain adoption at the company and local levels. At the company level, being part of a business group and especially the size of the company are positively correlated with the likelihood of adoption. Conversely, company age and performance show a negative relationship with blockchain adoption. At the local level, proximity between agri-food companies and blockchain solution developers and information technology service providers does not appear to be a significant factor in adoption. These findings highlight the urgent need for well-designed industrial policies at both regional and national levels to foster blockchain technology adoption, especially among small and medium-sized enterprises.