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Assessment of Blockchain Technology as Remedy to Counterfeit Drugs Problem in Pharmaceutical Supply Chain and Implementation Approach

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Abstract

Counterfeit drugs are a major problem in the pharmaceutical industry. It is a major threat to the healthcare sector as it not only causes many deaths but also leads to losses for the economy every year. The study investigates the protentional of blockchain technology to address this issue and propose a framework for its implementation. The study uses systematic literature review to identify requirement for management of counterfeit drugs and technology features of blockchain. Further, Task Technology Fit (TTF) framework was applied to evaluate the fit of the blockchain characteristics with the healthcare supply chain. Finally, using Decision-Making Trial and Evaluation Laboratory (DEMATEL) analysis the critical factors were identified along with the classification of blockchain features in the cause-and-effect group. The result of analysis suggests that blockchain technology is fit for addressing the problem of counterfeit drugs as its features address major requirement for the same. The results show that secure data transaction with the highest D + R value of 11.437 is the most important factor for the adoption of blockchain as it shows the highest relationship with the other factors. Moreover, only two factors, decentralization and data recording, have positive values for D-R which implies that these two are the causal factors and can affect the other factor. This means, for the adoption of the blockchain in the pharmaceutical supply chain, these two factors are majorly responsible, and they can be used to change the value and effectiveness of the other factors. The study is one of a kind and provides descriptive and prescriptive approach for implementation of blockchain for addressing the counterfeit drug problem in pharmaceutical supply chain. The findings of the study are useful for supply chain planners and public health professionals.

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Data Availability

The authors confirm that the data supporting the findings of this study are available within the article. The additional information can be provided on request.

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Acknowledgements

The infrastructure support provided by FORE School of Management, New Delhi, is greatly appreciated.

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Authors and Affiliations

  1. Maruti Suzuki India Limited, Gurugram, Haryana, India

    Pulkit Thakuriya

  2. FORE School of Management, New Delhi, India

    Sumeet Kaur

  3. College of Healthcare Management and Economics, Gulf Medical University, Ajman, UAE

    Vinaytosh Mishra

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  1. Pulkit Thakuriya
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  2. Sumeet Kaur
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  3. Vinaytosh Mishra
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Correspondence to Vinaytosh Mishra.

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Thakuriya, P., Kaur, S. & Mishra, V. Assessment of Blockchain Technology as Remedy to Counterfeit Drugs Problem in Pharmaceutical Supply Chain and Implementation Approach. Oper. Res. Forum 4, 39 (2023). https://doi.org/10.1007/s43069-023-00221-8

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