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Timing of blockchain adoption in a supply chain with competing manufacturers

Author

Listed:
  • Guojun Ji

    (Xiamen University)

  • Shu Zhou

    (Xiamen University)

  • Kee-Hung Lai

    (POLYU - The Hong Kong Polytechnic University [Hong Kong])

  • Kim Hua Tan

    (Nottingham University Business School [Nottingham])

  • Ajay Kumar

    (EM - EMLyon Business School)

Abstract

Recent improvements in consumers' awareness of product traceability have revealed the disadvantages of traditional supply chain traceability systems. Traditional traceability systems are centralized, and the data that they use are vulnerable to tampering, resulting in a low level of consumer trust. Blockchain technology, as a distributed ledger, can solve these problems. In this study, we examine the blockchain technology introduction decisions of a supply chain involving two competing manufacturers and a single retailer, and their effects on supply chain performance. We find that manufacturers should adopt blockchain technology only when consumer sensitivity to blockchain technology exceeds a certain level and manufacturers who can introduce blockchain technology first are more likely to reap big gains in profits. Regarding the unit verification fee that the retailer pays to the manufacturer when introducing blockchain technology, the manufacturer subsidizes this fee to the retailer in the form of lower wholesale prices. In other words, there is no additional wholesale cost to the retailer for blockchain technology-based products. The results of this study provide guidance for supply chain members' market practices.

Suggested Citation

  • Guojun Ji & Shu Zhou & Kee-Hung Lai & Kim Hua Tan & Ajay Kumar, 2022. "Timing of blockchain adoption in a supply chain with competing manufacturers," Post-Print hal-03628403, HAL.
    • Handle: RePEc:hal:journl:hal-03628403
    DOI: 10.1016/j.ijpe.2022.108430
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    Citations

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    Cited by:

    1. Kumar, Sourabh & Barua, Mukesh Kumar, 2023. "Exploring the hyperledger blockchain technology disruption and barriers of blockchain adoption in petroleum supply chain," Resources Policy, Elsevier, vol. 81(C).
    2. Zhu, Shichao & Li, Jian & Wang, Shouyang & Xia, Yusen & Wang, Yajing, 2023. "The role of blockchain technology in the dual-channel supply chain dominated by a brand owner," International Journal of Production Economics, Elsevier, vol. 258(C).
    3. Sharma, Prateek & Shukla, Dhirendra Mani & Raj, Alok, 2023. "Blockchain adoption and firm performance: The contingent roles of intangible capital and environmental dynamism," International Journal of Production Economics, Elsevier, vol. 256(C).
    4. Liu, Hua & Ma, Ruili & He, Guangyao & Lamrabet, Abdesslam & Fu, Shaoling, 2023. "The impact of blockchain technology on the online purchase behavior of green agricultural products," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).

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