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How Blockchain interrelates with trust in the supply chain context: Insights from tracing sustainability in the metal industry

In: Adapting to the Future: How Digitalization Shapes Sustainable Logistics and Resilient Supply Chain Management. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 31

Author

Listed:
  • Batwa, Abbas
  • Norrman, Andreas
  • Arvidsson, Ala

Abstract

Purpose: Blockchain technology (BCT) is argued to deliver a trustless system where trust is driven by technology rather than individuals or organizations. This paper studies this claim using insights related to tracing sustainability features in the metal industry. Methodology: The results of this study are based on multiple case studies of two supply chains (steel and copper) piloting a traceability solution for tracing metal sustainability throughout the supply chain. The data are collected and analyzed from multiple actors using sources such as interviews and secondary documents. Findings: The study empirically supported that even if the BCT is applied, there will be a need for: benevolence, integrity, ability, and credibility dimensions of trust. Hence, a trustless system is still not yet applicable. Moreover, to remove the need for the trusted third party certificates, there are boundary conditions such as governance structures and standardizations that must be addressed first. Originality: The concept of trust in the novel phenomena of the BCT was investigated from different point of views, such as the supplier and the buyer views. Moreover, different contexts were examined such as the commercial and the sustainability contexts. Therefore, this paper is among the first to handle the issue of trust from these regards.

Suggested Citation

  • Batwa, Abbas & Norrman, Andreas & Arvidsson, Ala, 2021. "How Blockchain interrelates with trust in the supply chain context: Insights from tracing sustainability in the metal industry," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Ringle, Christian M. & Blecker, Thorsten (ed.), Adapting to the Future: How Digitalization Shapes Sustainable Logistics and Resilient Supply Chain Management. Proceedings of the Hamburg Internationa, volume 31, pages 329-351, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    • Handle: RePEc:zbw:hiclch:249621
    DOI: 10.15480/882.3955
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    References listed on IDEAS

    as
    1. Sara Saberi & Mahtab Kouhizadeh & Joseph Sarkis & Lejia Shen, 2019. "Blockchain technology and its relationships to sustainable supply chain management," International Journal of Production Research, Taylor & Francis Journals, vol. 57(7), pages 2117-2135, April.
    2. Teresa M. McCarthy & Susan L. Golicic, 2005. "A Proposal for Case Study Methodology in Supply Chain Integration Research," Springer Books, in: Herbert Kotzab & Stefan Seuring & Martin Müller & Gerald Reiner (ed.), Research Methodologies in Supply Chain Management, pages 251-266, Springer.
    3. Laura Poppo & Kevin Zheng Zhou & Julie J. Li, 2016. "When can you trust “trust”? Calculative trust, relational trust, and supplier performance," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 724-741, April.
    4. Susan L. Golicic & Donna F. Davis & Teresa M. McCarthy, 2005. "A Balanced Approach to Research in Supply Chain Management," Springer Books, in: Herbert Kotzab & Stefan Seuring & Martin Müller & Gerald Reiner (ed.), Research Methodologies in Supply Chain Management, pages 15-29, Springer.
    5. De Filippi, Primavera & Mannan, Morshed & Reijers, Wessel, 2020. "Blockchain as a confidence machine: The problem of trust & challenges of governance," Technology in Society, Elsevier, vol. 62(C).
    6. Abderahman Rejeb & John G. Keogh & Horst Treiblmaier, 2019. "Leveraging the Internet of Things and Blockchain Technology in Supply Chain Management," Future Internet, MDPI, vol. 11(7), pages 1-22, July.
    7. Zachary A. Collier & Joseph Sarkis, 2021. "The zero trust supply chain: Managing supply chain risk in the absence of trust," International Journal of Production Research, Taylor & Francis Journals, vol. 59(11), pages 3430-3445, June.
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