|The phenomenon of copycats is common in a wide range of industries. Recently, to indicate product authenticity and combat copycats, many brand name companies (BNCs) have started selling products through retailers. These BNCs deploy a scalable protocol that is integrated into a permissioned blockchain technology (PBT) platform. We examine how PBT combats copycats in the supply chain and how it benefits BNCs. Although PBT implementation helps novice customers identify product authenticity and the real quality of products, that is, to take advantage of a quality disclosure effect, we show that, if and only if the number of novice customers is large enough, then selling through a PBT retailer can effectively combat copycats. Thus, PBT increases the profit of the BNC, consumer surplus, social welfare, and reduces the profit of a copycat. Moreover, conventional wisdom tells us that PBT ensures supply chain transparency and motivates a firm to improve its product quality. However, the BNC reduces the quality of its products when using PBT, because an improvement in product quality is not profitable if consumers can distinguish between genuine and imitation products. Furthermore, we extend the model by considering the case where the BNC itself implements PBT. Without the double marginalization effect, even if the number of novice customers is small, blockchain technology may exist in the market (the BNC self-implements). In addition, if the unit production cost of a genuine product is large enough, social welfare increases when production cost increases. © 2021 Production and Operations Management Society
|In this paper, we explore why users’ experiences with emerging supply chain technologies comprise inflated expectations followed by disappointment in the early stages of adoption, as per the Gartner Hype Cycle. We used “affordance theory” to study how managers perceive emerging technologies to explain their adoption experience. Affordance theory indicates that perceived benefits—and goals and constraints—depend on the interaction between technology and the users, not on the technology alone. First, we used the literature for two purposes: first, to obtain characteristics of blockchain, Internet of Things (IoT), and artificial intelligence (AI) as emerging technologies; and second, to itemize generic goals, affordances, and constraints in adopting any supply chain technology. Next, we asked 400+ supply chain managers to select those affordances, constraints, and goals that they viewed as pertinent to their organizations’ supply chains for whichever of these three technologies they were implementing. Finally, we compared the responses across technologies for individual respondents (who selected more than one technology) and within the pool of respondents. We found that respondents who selected more than one technology made distinct selections individually for the different technologies relevant to them. The pooled responses across all respondents, however, prioritized the aggregated goals, affordances, and constraints in the same way, regardless of the technology, the organization, or the network features of the supply chain. Overall, it appears that the characteristics of the technology do not inform user expectations at the early stages of adoption. This initial disconnect—between characteristics and expectation—may explain the “inflated expectations” followed by the early “trough of disappointment” with emerging technologies in the Gartner Hype Cycle, as users focus on obtaining the same benefits for the supply chain from any new emerging technology. Only subsequent shared experiences can lead to the long “slope of enlightenment.”. © 2022 The Authors. Production and Operations Management published by Wiley Periodicals LLC on behalf of Production and Operations Management Society
|The impact of blockchain technology (BCT) implementation on the accuracy, reliability, visibility, incorruptibility, and timeliness of supply-chain processes and transactions, makes it attractive to improve the robustness, transparency, accountability and decision-making in risk management. Therefore, the emerging BCT can present an invaluable opportunity for the organisations in need of preparing for and responding to uncertain and complex instances. The adoption of BCT in the operations and supply chain management (OSCM) literature remains scarcely investigated, especially in the context of managing risks in emergency situations such as crises, disasters, and pandemics, which are characterised by volatility, uncertainty, complexity and ambiguity (VUCA) in the business environment. This article will contribute to the OSCM literature by developing a conceptual model that will examine the causal relationships between VUCA business environment, constructs derived from technology acceptance model (TAM), resilience and behavioural intention of the operations managers to adopt BCT for risk management. The model was tested by gathering responses from 116 operations managers in the UK (during COVID-19 pandemic) through structural equation modelling. Findings from the analysis suggest that understanding the benefits of BCT, involvement in resilient organisational practices and user-friendly implementation of the technology will have a significant and positive influence on the intention to adopt BCT for risk management in the OSCM context. Building upon these findings, we have proposed a BCT decision framework to assess the feasibility and suitability of adopting BCT in each context (such as risk management), which will have strategic implications for operations managers and the OSCM community. © 2022, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
|Blockchain technology has been growing in importance and acceptability over the past few years. Yet, there is limited empirical research on the organizational and technology specific factors that play a critical role in driving its adoption in the supply chain. The purpose of this paper is to develop a comprehensive framework for blockchain adoption in the supply chain by identifying the enablers and empirically evaluating their interdependencies and impact on adoption. 20 enablers of blockchain adoption in the supply chain are identified using an extensive literature review and theoretical lenses from the Diffusion of Innovation (DOI) theory and the business technology adoption model developed by Iacovou, Benbassat and Dexter (1995). In the confirmatory phase, we employ the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method to extract logic from data collected from 37 French experts about the impact of the enablers and their interdependencies. Our paper extends the multi-theoretic empirical studies to blockchain technology and identifies the enablers of blockchain adoption from technological, organizational, supply chain and external environment perspectives. Regarding the importance of the categories of enablers, we find that the relative advantage of the technology and the external pressure are the most prominent categories of enablers that impact blockchain adoption in the supply chain. Our analysis also shows the important causal role on adoption of the potential of blockchain to reduce transaction cost, the consumer interest in traceability data and the establishment of a regulatory framework for blockchain usage. © 2022 The Authors
|The production and consumption of products are held responsible for most environmental challenges and climatic changes, which adversely affect human lives and compromise the future of generations to come. Sustainable production appears as a strategic route to combat these adversities, the pursuit of which is highly challenging. In this study, we argue that Intellectual capital (IC), featured by human capital, relational capital, and structural capital, can play a dual role in improving the sustainable production of a firm. We put forward that IC contributes to sustainable production directly and indirectly through the adoption of blockchain-driven supply chain management (BCSCM). In this context, the objective of this study is to examine the impact of intellectual capital (IC) on sustainable production. The study also investigates the role of SC mapping and BCSCM in the association between IC and sustainable production. Data were collected from 289 textile firms of Pakistan and Bangladesh with the help of a designed questionnaire. The study employed CB-SEM to examine the modeled relationship. Further, PLS-Multi-group Analysis (MGA) was used for cross-country comparison of the results. The results diverge from the conventional wisdom exhibiting an insignificant direct impact of IC in sustainable production. Nevertheless, the results show a meaningful indirect effect of IC through BCSCM and SC mapping on sustainable production. Results also exhibit a significant direct impact of BCSCM on the sustainable production of a firm. The results call for consideration of IC and BCSCM in improving the sustainability of a firm. © 2021 Elsevier Inc.
|Asymmetric information is prevalent in the grain and oilseed markets. This paper demonstrates the benefits of blockchain technology to mitigate asymmetric information about the soybean's protein quality between sellers and buyers. We use decision trees to model information asymmetry under both conventional and blockchain scenarios. The results suggest that asymmetric information can be mitigated with a blockchain, resulting in substantial premiums (40–60 cents per bushel of soybeans). These results could have significant implications for the grain and oilseed industry in order to decrease transaction costs, to improve market efficiency, and to prioritize strategies for the procurement of soybeans. JEL CLASSIFICATION: O33 Q13; Q17. © 2021 Agricultural & Applied Economics Association.
|Amid stringent traceability requirements and a nearly 14-year ban, the U.S. beef industry is rebuilding its market presence in China. Blockchain technology offers a responsive means of meeting Chinese import traceability requirements while also addressing consumers' food safety concerns. We evaluate Chinese demand for U.S. beef and blockchain-based traceability and find that a sizeable segment of the market (37%) is willing to pay a premium for U.S. beef that is traceable using blockchains. Results indicate that investments in traceability systems that utilize blockchain technology may be an effective way for producers to capture a significant market share in China. © 2020 Agricultural and Applied Economics Association
|Blockchain (BC) technology, defined as a shared information system to validate, secure, and permanently store transactions among multiple parties on a distributed ledger, presents many applications in agricultural and food industries. This study examines the application of BC in food traceability for beef in the United States using a choice experiment. Findings indicate that consumers value USDA certifications over BC traceability to guide their meat preferences. Our study suggests a number of industry implications, the most important of which suggests focusing business and consumer education on the value of product data, rather than on the value of the technologies that manage data. © 2021 The Authors. Applied Economic Perspectives and Policy published by Wiley Periodicals LLC on behalf of Agricultural & Applied Economics Association.
|The literature so far has been focused on technological sophistication rather than the aspects of blockchain adoption that can hinder or facilitate the use of the technology. To address this gap this paper aims to study the cognitive factors underpinning adoption decision-making moderated by user characteristics. Using a cross-sectional research design, the study recruited 506 respondents to participate and test the relationships hypothesised in the research model. The results of the analysis demonstrated that perceived threat vulnerability, response cost, response efficacy and self-efficacy determine adoption intention. These factors have varying effects on intention depending on users' subjective knowledge, objective knowledge and innovativeness. This evidence contributes to the understanding of users’ perspectives on blockchain adoption, which has been under-researched so far. The findings shed light on the cognitive factors motivating blockchain-based technology use and the individual characteristics of users who are likely to adopt the technology in the context of data privacy and security. In turn, these findings can inform practitioners about the aspects of user behaviour that should be considered while developing and marketing the technology. © 2022 Elsevier Ltd
|Green products have received increasing attention by firms and consumers in recent years, but consumers are often uncertain about the valuation of green products. To solve this problem, many firms have utilized blockchain technology to provide transparent and traceable information for their products. This study examines optimal strategies for pricing and ‘greenness’ investment for green products with government subsidies and explores the conditions for adopting blockchain technology. First, we find that both retailers and consumers always benefit from a manufacturer's adoption of blockchain technology. When the blockchain's operational cost is small or the consumer valuation uncertainty is high, the social welfare outcome will be positive after the adoption of blockchain technology. Second, although blockchain can reduce the valuation uncertainty for consumers, the demand in the blockchain-supported supply chain is not always higher than that in the traditional supply chain. In addition, when a government subsidizes either the manufacturer or the consumer, adopting blockchain is still profitable for the manufacturer even if the operational cost of blockchain technology is relatively large. However, the result is quite different when the government subsidizes the retailer. In the retailer subsidy program, the manufacturer's adoption of blockchain technology hinges on the level of consumer valuation uncertainty. © 2021 Elsevier B.V.
|The growing business evolution and the latest Artificial Intelligence (AI) make the different business practices to be enhanced by the ability to create new means of collaboration. Such growing technology helps to deliver brand services and even some new kinds of corporate interactions with customers and staff. AI digitization simultaneously emphasized businesses to focus on the existing strategies and regularly and early pursue new market opportunities. While digital technology research in the framework of business innovation is gaining greater interest and the privacy of data can be maintained by Blockchain technology. Therefore in this paper, Business Innovation based on artificial intelligence and Blockchain technology (BI-AIBT) has been proposed to enhance the business practices and maintain the secured interaction among the various clients. The collection of qualitative empirical data is made up of few primary respondents from two distinct business sectors. BI-AIBT has been evaluated by undertaking and exploring the difference and similarities between digitalization's impact on value development, proposal, and business capture. Besides, organizational capacities and staff skills interaction issues can be improved by BT. The experimental result suggests that digital transformation is usually regarded as essential and improves business innovation strategies. The numerical result proposed BI-AIBT improves the demand prediction ratio (97.1%), product quality ratio (98.3%), Business development ratio (98.9%), customer behavior analysis ratio (96.3%), and customer satisfaction ratio (97.2%). © 2021 Elsevier Ltd
|Food safety is a public health issue of paramount importance. In this regard, blockchain has emerged as a promising technology that allows users to effectively and efficiently record the origin and flow of products and eliminate or reduce harmful food fraud. Consumers can benefit from this development by receiving up-to-date and verifiable information about the origins and delivery routes of their purchases. Drawing on signaling theory and the results of two experimental studies with 151 and 152 participants, respectively, we investigate how the use of blockchain to trace food products impacts consumers’ perception of product quality as a mediating variable and subsequently their purchase intention. Our framework further considers brand familiarity as a moderating variable. The findings from the two experiments show that blockchain labels as a signaling mechanism in food supply chains help to strengthen consumers’ perceived quality of food products, which, in turn, increases their purchase intention. This effect is more pronounced for less familiar brands, which is valuable information for managers who want to build a brand's reputation. From an academic perspective, we highlight the applicability of signaling theory to identify blockchain-based traceability systems as important drivers of perceived product quality and consequently purchase intention. © 2022 The Authors
|Purpose: Given the increasing industry interest in blockchain technologies for supply chain management and product traceability, this paper aims to investigate consumer purchasing intentions for blockchain traceable coffee and their psychosocial antecedents, utilising an extended model of the theory of planned behaviour (TPB). Design/methodology/approach: An online questionnaire study of 123 participants was deployed, using two traceability systems (one based on blockchain and one on a more established traceability certification) for organic coffee. Findings: Adding variables such as environmental protections, trust and habits significantly increased the predictive power of TPB. The results suggest that attitude, perceived behavioural control and environmental protections drive intentions to purchase blockchain traceable coffee. Research limitations/implications: Apart from establishing the factors affecting consumer intentions for blockchain traceable coffee, this study validates the TPB as a model of explaining coffee purchasing intentions and provides evidence of new variables that can significantly increase the model's predictive power. Practical implications: The proposed format of presenting traceability information along with the significant variables revealed in our study can function as a guide for designing product features and marketing strategies for blockchain traceable organic coffee. Increasing consumer awareness on product traceability will also play a crucial role in the success of these products. Originality/value: This study is the first to explore consumer purchasing intentions for blockchain traceable coffee and establish the psychosocial variables behind them contributing, in that way, to an understudied area in academic literature as well as providing insights for a more consumer-centric design of such products. © 2021, Emerald Publishing Limited.
|Blockchain has evolved as one of the disruptive technologies in the landscape of business. The study aims to investigate drivers of consumer adoption of blockchain for product origin and track to trace history before making a purchase. An extended technology adoption model (TAM) has been proposed to examine the consumer perspective for blockchain adoption in the food supply chain. Based on the survey of 208 retail consumers, the proposed model was validated using variance-based structure equation modeling. Findings of the study emphasize the significant role of perceived security and privacy in developing trust, ease of use, and usefulness of blockchain-enabled systems. The relationship between perceived ease of use and attitude is mediated through perceived usefulness. The strong influence of attitude on adoption intention represents the consumer interest for blockchain to understand the product provenance. The study provides vital insights for successful blockchain implementation to enhance supply chain effectiveness. © 2022 IGI Global. All rights reserved.
|Bitcoin provides its users with transaction-processing services which are similar to those of traditional payment systems. This article models the novel economic structure implied by Bitcoin's innovative decentralized design, which allows the payment system to be reliably operated by unrelated parties called miners. We find that this decentralized design protects users from monopoly pricing. Competition among service providers within the platform and free entry imply no entity can profitably affect the level of fees paid by users. Instead, a market for transaction-processing determines the fees users pay to gain priority and avoid transaction-processing delays. The article (i) derives closed-form formulas of the fees and waiting times and studies their properties, (ii) compares pricing under the Bitcoin Payment System to that under a traditional payment system operated by a profit-maximizing firm, and (iii) suggests protocol design modifications to enhance the platform's efficiency. The Appendix describes and explains the main attributes of Bitcoin and the underlying blockchain technology. © 2021 The Author(s). Published by Oxford University Press on behalf of The Review of Economic Studies Limited.
|Data breaches and cyber incidents are on the rise, and companies continually research new technologies to defend against attacks and protect customer data. The blockchain is a data store designed to promote data privacy, as well as transaction integrity. Enterprises in several industries, especially banking, have investigated the implementation of blockchain-based databases to replace centralised databases as one mechanism for protecting customers’ data by separating transactional data from personally identifiable information. Despite the blockchain’s privacy protections, consumers remain largely unaware of these benefits. Building on the Health Belief Model (HBM), we include privacy concerns and inertia as critical factors that influence consumers’ perceptions of blockchain-based databases’ benefits. Using a sample of 304 respondents, we test a theoretical model incorporating these factors. Our study results indicate threat severity, threat susceptibility, awareness, and inertia significantly influence the perceived benefits of blockchain, which has a significant positive influence on consumers’ intention to switch to blockchain-based applications. Although consumers’ comfort with the status quo of traditional banking mechanisms is a significant barrier to the realisation of blockchain banking applications benefits, additional awareness of consumer privacy protections can persuade customers to use the blockchain-based applications, especially if they exhibit heightened privacy concerns. © Operational Research Society 2021.
|Counterfeiting is a severe problem in many sectors. There are two types of counterfeits: non-deceptive and deceptive. While both types are important business challenge, deceptive counterfeit has an additional negative impact—customers have a post-purchase regret if they expect to purchase a real product but ended up with a fake. The focus of this study is on the setting that relates to deceptive counterfeits. Our paper is one of the first that examines the effectiveness of blockchain as a solution to a supply chain challenge. Specifically, the unique feature of blockchain that we model, which none of the traditional strategies studied in the literature is capable of, is that blockchain adoption changes the analysis from a deceptive counterfeit setting to a non-deceptive counterfeit setting. We also consider government being a decision maker and customers' privacy concern from blockchain adoption, two features that are not examined in the existing literature. We consider a market with a manufacturer and a deceptive counterfeiter. The manufacturer can signal product authenticity either with blockchain technology or through pricing. The government can provide subsidy to encourage blockchain adoption. Blockchain should be used when the counterfeit quality is intermediate or when customers have intermediate distrust about products in the market. If government provides subsidy, blockchain can be more effective than differential pricing strategy in eliminating post-purchase regret. Our results advocate for government providing subsidy because it benefits both customers and the society and could be a better approach than government enforcement efforts. © 2021 Production and Operations Management Society