Guojun Ji
Timing of blockchain adoption in a supply chain with competing manufacturers
Ji, Guojun; Zhou, Shu; Lai, Kee-Hung; Tan, Kim Hua; Kumar, Ajay
Authors
Shu Zhou
Kee-Hung Lai
Professor Kim Tan kim.tan@nottingham.ac.uk
PROFESSOR OF OPERATIONS AND INNOVATION MANAGEMENT
Ajay Kumar
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.
Citation
Ji, G., Zhou, S., Lai, K.-H., Tan, K. H., & Kumar, A. (2022). Timing of blockchain adoption in a supply chain with competing manufacturers. International Journal of Production Economics, 247, Article 108430. https://doi.org/10.1016/j.ijpe.2022.108430
| Journal Article Type | Article |
|---|---|
| Acceptance Date | Jan 18, 2022 |
| Online Publication Date | Jan 22, 2022 |
| Publication Date | 2022-05 |
| Deposit Date | Feb 11, 2022 |
| Publicly Available Date | Jul 23, 2023 |
| Journal | International Journal of Production Economics |
| Print ISSN | 0925-5273 |
| Electronic ISSN | 0925-5273 |
| Publisher | Elsevier |
| Peer Reviewed | Peer Reviewed |
| Volume | 247 |
| Article Number | 108430 |
| DOI | https://doi.org/10.1016/j.ijpe.2022.108430 |
| Keywords | Supply chain management; Manufacturer competition; Blockchain technology; Consumer traceability awareness |
| Public URL | https://nottingham-repository.worktribe.com/output/7416203 |
| Publisher URL | https://www.sciencedirect.com/science/article/abs/pii/S0925527322000238 |
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Timing Of Blockchain Adoption In A Supply Chain With Competing Manufacturers
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