Potential and Barriers to the Implementation of Blockchain Technology in Supply Chain Management

18 Pages Posted: 27 Aug 2018

See all articles by Frank Kottler

Frank Kottler

University of Hamburg - Faculty of Business, Economics, and Social Sciences, Students

Date Written: August 8, 2018

Abstract

Supply chain management has been identified as one potential application for blockchain technology. Established blockchains are envisioned to solve current supply chain challenges around data monitoring, transparency, and authenticity; However, there is a lack of knowledge in how to establish industry-wide blockchains in the first place. Based on working examples and academic research results of blockchain technology in supply chain management, common supply chain properties are identified that blockchain technology is believed to improve. These characteristics are critically discussed with respect to the operating mode of blockchains, assessing the technology’s actual potential to improve these properties. Pitfalls and chances of blockchain technology itself and its use within supply chains are elucidated. The consideration of supply chain properties and pitfalls and chances leads to an implementation agenda, highlighting the importance of standardization and technology governance. This explorative study suggests that companies engage in a collective action initiative in order to agree on standards, rethink the role of certain industry players and establish participatory governance mechanisms. It recognizes the importance of establishing one single source of truth that is accepted by all industry participants. Companies going forward with their own protocols will have to adjust their systems once a standard is established.

Keywords: blockchain technology, supply chain management, collective action initiative, governance, standardization

JEL Classification: L15, O31, O32

Suggested Citation

Kottler, Frank, Potential and Barriers to the Implementation of Blockchain Technology in Supply Chain Management (August 8, 2018). Available at SSRN: https://ssrn.com/abstract=3231695 or http://dx.doi.org/10.2139/ssrn.3231695

Frank Kottler (Contact Author)

University of Hamburg - Faculty of Business, Economics, and Social Sciences, Students ( email )

Hamburg
Germany
+491704708803 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
302
Abstract Views
1,223
rank
113,972
PlumX Metrics