Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA
Introduction
Over the recent years, to the exponential growth of information and communication technologies (ICTs) has given rise to several disruptions in all business models, mainly in the logistics and supply chain management (L/SCM) field (Goldsby & Zinn, 2016). Because of these disruptions, L/SCMs have been experimenting several effects while putting in substantial efforts to reconfigure their operation models (Büyüközkan & Göçer, 2018). Thus, the relationships and operations models can increase substantially their complexities with this new ingredient. This relates for instance to trust between supply chain members, transparency, and accountability through the network (Morgan, Richey, & Ellinger, 2018), collaboration (Tsanos & Zografos, 2016), knowledge sharing (Wagner & Buko, 2005), and demand and supply chain integration (Stolze, Murfield, & Esper, 2015), among others. However, cutting-edge technologies are emerging, with a high potential to improve the SCM operations models and to disrupt inefficient models.
In this context, one of the most prominent technologies is blockchain (Aste, Tasca, & Di Matteo, 2017; Y. Chen, 2018; Kshetri, 2018; Viryasitavat, Da Xu, Bi, & Sapsomboon, 2018). Even though the application of blockchain technologies in the L/SCM context is still at its initial stages, this does not repel the fact that this technology will surely remodel the L/SCM relationships (Biswas, Muthukkumarasamy, & Tan, 2017; Kshetri, 2018; Lu & Xu, 2017), together with the consumption behavior of the society (Aste et al., 2017). For some time now, blockchain technology is being employed in a wide array of contexts, ranging from open manufacturing (Li et al., 2018) and real state―to ensure fraud prevention (Veuger, 2018)―to clinical trials (Benchoufi, Porcher, & Ravaud, 2017) and entrepreneurship innovation (Y. Chen, 2018), amongst others.
Supply chain managers should adopt blockchain for their operations because virtually all transactions with blockchain are safer, more transparent, traceable and efficient (Aste et al., 2017; Kshetri, 2018). In addition, the cooperation between supply chain members tends to increase (Aste et al., 2017), reflecting on costs reduction and increased efficiency in the supply chain. Furthermore, the blockchain adoption can enhance customers’ trust, which will allow them to check the entire journey of goods across the supply chain in full confidence. In this regard, the traceability (Biswas et al., 2017) mechanisms of the blockchain will support products fraud prevention and fake across the supply chains (R. Chen, 2018). As result, supply chains will gain a lot in terms of costs reductions and efficiency.
The emerging literature on blockchain has reported various benefits and advantages of this technology that can directly impact the L/SCM. They include transparency and accountability (Kshetri, 2018; Zou et al., 2018), traceability and fraud prevention (Biswas et al., 2017; R. Chen, 2018; Lu & Xu, 2017), cybersecurity and protection (Kshetri, 2017), etc. The blockchain technology can rely on its tamper-proof characteristic (Aste et al., 2017; Viryasitavat et al., 2018) to remodel relationship paradigms between all members of the supply chain. As blockchain applied to L/SCM is still at its infancy stage, most of the organizations are yet to go beyond analyses leading to the adoption phase. This is why, as indicated by the literature on technology acceptance models (TAMs) (Davis, 1989; Venkatesh, Thong, & Xu, 2012; Venkatesh, Morris, Davis, & Davis, 2003), various authors have dedicated significant efforts to help understand how individuals behave when it comes to accepting to use a technology.
In this vein, the unified theory of acceptance and use of technology (UTAUT) of previous TAM (Venkatesh et al., 2003), whose extension is UTAUT2 (Venkatesh et al., 2012), is a suitable approach to gain understanding of the blockchain adoption in the supply chain field. The UTAUT is a robust model in which the variance explained by behavioral intention achieved 56%, and technology use, 40%. However, the UTAUT2 outperforms these results, reaching 74% and 52%, respectively for behavioral intention and technology use (Venkatesh et al., 2012).
A good number of recent studies have integrated technology acceptance models in various contexts (Fosso Wamba, Bhattacharya, Trinchera, & Ngai, 2017; Huang, Liu, & Chang, 2012; Liébana-Cabanillas, Marinković, & Kalinić, 2017; Lin, 2011; Mamonov & Benbunan-Fich, 2017; Mortenson & Vidgen, 2016; Wu, Zhao, Zhu, Tan, & Zheng, 2011; Zhang, Weng, & Zhu, 2018). In addition, few empirical studies using surveys on blockchain and supply chain were reported in the literature (Fosso Wamba, Kamdjoug, Robert, Bawack, & Keogh, 2018; Kamble, Gunasekaran, & Arha, 2018).
However, the blockchain adoption behavior and the drivers for such adoption in organizations remain scarcely investigated, according to the extent relevant literature. Therefore, we aim to answer the following research question (RQ) to shed more light on the employees’ behaviors associated with blockchain adoption: what are the drivers of blockchain adoption in the supply chain?
Moreover, this study aims to provide the supply chain and logistics community with the finest discussion elements for a better understanding of the current impact of the blockchain technology on the adoption behavior of professionals (individual level). The study further seeks to spur supply chain stakeholders to rethink their internal relationships in order to keep abreast of this digital age where blockchain is quickly gaining ground. To answer our research question, this study draws on the recent literature on blockchain (Aste et al., 2017; Banerjee, Lee, & Choo, 2018; Francisco & Swanson, 2018; Kano & Nakajima, 2018; Kshetri, 2018), network theory (Borgatti & LI, 2009; Burt, 1980; Grandori & Soda, 1995; Granovetter, 1973), considering that the L/SCM is a complex network and that a better understanding supply chain relationships and networks evolution requires the latest available information. As the primary objective of this study is related to the blockchain adoption, our theoretical model was based also on the literature on technology acceptance models (2012, Davis, 1989; Venkatesh & Bala, 2008; Venkatesh & Davis, 2000; Venkatesh et al., 2003; Yi, Jackson, Park, & Probst, 2006).
This paper contributes to enriching the literature on IT adoption, as it reports blockchain adoption as a hot topic for scholars and practitioners, who are eager to gain an in-depth understanding of the adoption behavior at the individual level. Additionally, this study contributes to the advancement of the logistics and SCM field, because it unveils the blockchain implications for SCM. As for the remainder of this paper, Section 2 describes the fundamental concepts and perspectives for blockchain, supply chain and related networks, but also the various applicable technology acceptance model theories. In Section 3, we derive our research model, followed by a description of the selected methodology and the main results in Section 4. Section 5 deals with the discussion of such results, the implications for research and practice, as well as the limitations of the research coupled with some suggestions for future research. Finally, Section 6 exhibit the main conclusions of this study.
Section snippets
Blockchain applications: fundamentals
Blockchain emerged in the cryptocurrency market as a disrupting technology (Nakamoto, 2008). The blockchain core is related to a distributed database (ledgers) (Kano & Nakajima, 2018) that performs in a shared and synchronized environment (chain), in which information is validated by the users (Aste et al., 2017). This implies a decentralized system where the validation of transactions does not give rise to any alteration (Y. Chen, 2018) and where the tamper-proof characteristic of blockchain
Research model and hypotheses
Drawing on the literature on TAM and its extensions, blockchain, SCM and the network theory, we derived a model (Fig. 2) to understand the role of blockchain adoption in the supply chain field. Understanding blockchain adoption implies that we grasp the professional behavior in inter-firm, but also how this behavior can be significantly influenced by the entire supply chain network relationships. Consequently, the network theory supports our argumentation in this regard, mainly given the
Sampling design and data collection
The appendix shows the constructs and their definitions. We adapted scales from prior literature (2012, Maruping et al., 2017; Mayer et al., 1995; Morgan et al., 2018; Venkatesh et al., 2003) and derived to this study context. All constructs were measured by a 7-point Likert scale (i.e., strongly disagree – strongly agree) (Akter, Fosso Wamba, & Dewan, 2017). The survey pretesting was realized by 22 scholars and professionals involved in blockchain-enabled supply chain initiatives.
The final
Discussion
Based on theories concerning technology acceptance models (TAMs) (Davis, 1989), with special focus on UTAUT and UTAUT2 (Venkatesh et al., 2012; Venkatesh et al., 2003), we theoretically developed and empirically validated a proposed research model to help understand the individual behavior behind blockchain adoption and use. Unfortunately, prior literature on IT adoption or even on SCM does not, to the best of our knowledge, include outstanding research on blockchain adoption using the UTAUT
Conclusions
In this paper, we aimed to shed light on blockchain adoption behavior in the SCM field, while taking into account the behavior of the adopters from India and the USA. Our model was developed in accordance with prior IT adoption literature (Davis, 1989; Maruping et al., 2017; Venkatesh et al., 2012; Venkatesh et al., 2003). Our model was estimated using PLS-SEM approach, and the results obtained supported the proposed model. However, it showed important differences in blockchain adoption
Dr Maciel M. Queiroz is a Researcher in Operations and Supply Chain Management at the Naval Architecture and Ocean Engineering Department of the University of São Paulo, Brazil. Maciel holds an MSc and a PhD in Naval Architecture and Ocean Engineering from the University of São Paulo. His current research interests focus on supply chain digital disruptions, digital supply chain capabilities, Industry 4.0, blockchain, big data, IoT, CPS, including the adoption and use of these technologies.
References (127)
- et al.
The adoption of M-government services from the user’s perspectives: Empirical evidence from the United Arab Emirates
International Journal of Information Management
(2017) The theory of planned behavior
Organizational Behavior and Human Decision Processes
(1991)- et al.
How to improve firm performance using big data analytics capability and business strategy alignment?
International Journal of Production Economics
(2016) - et al.
Factors influencing adoption of mobile banking by Jordanian bank customers: Extending UTAUT2 with trust
International Journal of Information Management
(2017) - et al.
The network paradigm in organizational research: A review and typology
Journal of Management
(2003) - et al.
Digital supply chain: Literature review and a proposed framework for future research
Computers in Industry
(2018) - et al.
Supply networks and complex adaptive systems: Control versus emergence
Journal of Operations Management
(2001) - et al.
An empirical validation of a unified model of electronic government adoption (UMEGA)
Government Information Quarterly
(2017) - et al.
Role of intrinsic and extrinsic factors in user social media acceptance within workspace: Assessing unobserved heterogeneity
International Journal of Information Management
(2017) - et al.
Reconceptualization of information technology flexibility for supply chain management: An empirical study
International Journal of Production Economics
(2017)
Enterprise architecture: A competence-based approach to achieving agility and firm performance
International Journal of Production Economics
An empirical investigation of factors influencing the adoption of data mining tools
International Journal of Information Management
Blockchain’s roles in strengthening cybersecurity and protecting privacy
Telecommunications Policy
1 Blockchain’s roles in meeting key supply chain management objectives
International Journal of Information Management
A SEM-neural network approach for predicting antecedents of m-commerce acceptance
International Journal of Information Management
An empirical investigation of mobile banking adoption: The effect of innovation attributes and knowledge-based trust
International Journal of Information Management
Exploring factors affecting social e-commerce service adoption: The case of Facebook Gifts
International Journal of Information Management
Understanding the internet banking adoption: A unified theory of acceptance and use of technology and perceived risk application
International Journal of Information Management
A computational literature review of the technology acceptance model
International Journal of Information Management
Extending the understanding of mobile banking adoption: When UTAUT meets TTF and ITM
International Journal of Information Management
A traceability chain algorithm for artificial neural networks using T–S fuzzy cognitive maps in blockchain
Future Generation Computer Systems
Adoption of online public grievance redressal system in India: Toward developing a unified view
Computers in Human Behavior
On blockchain and its integration with IoT. Challenges and opportunities
Future Generation Computer Systems
Big TAM in Oman: Exploring the promise of on-line banking, its adoption by customers and the challenges of banking in Oman
International Journal of Information Management
Conceptualizing a model for adoption of cloud computing in education
International Journal of Information Management
Rival precedence and open platform adoption: An empirical analysis
International Journal of Information Management
The construct of information systems use benefits: Theoretical explication of its underlying dimensions and the development of a measurement scale
International Journal of Information Management
Personal computing: Toward a conceptual model of utilization
MIS Quarterly
Why PLS-SEM is suitable for complex modelling? An empirical illustration in big data analytics quality
Production Planning and Control
Interventional factors affecting instructors adoption of e-learning system: A case study of palestine
Journal of Theoretical and Applied Information Technology
Estimating nonresponse bias in mail surveys
Journal of Marketing Research
Blockchain technologies: The foreseeable impact on society and industry
Computer
The impact of supply chain structure on the use of supplier socially responsible practices
International Journal of Operations & Production Management
Understanding attitudes and predicting social behavior
A blockchain future to Internet of Things security: A position paper
Digital Communications and Networks
Improving supply chain performance through improved visibility
The International Journal of Logistics Management
Are government employees adopting local e-government transformation?
Transforming Government: People Process and Policy
Blockchain protocols in clinical trials: Transparency and traceability of consent
F1000Research
Blockchain based wine supply chain traceability system
Future Technologies Conference
On social network analysis in a supply chain context
The Journal of Supply Chain Management
Predicting collaboration technology use: Integrating technology adoption and collaboration research
Journal of Management Information Systems
Models of network structure
Annual Review of Sociology
Toward the theory of the supply chain
The Journal of Supply Chain Management
The impact of supply chain analytics on operational performance: A resource-based view
International Journal of Production Research
Issues and opinion on structural equation modeling
MIS Quarterly
Supply networks: Theories and models
The Journal of Supply Chain Management
Elucidating social networking apps decisions performance expectancy, effort
Nankai Business Review International
Computer self-efficacy: Development of a measure and initial test
MIS Quarterly
Perceived usefulness, perceived ease of use, and user acceptance of information technology
MIS Quarterly
Extrinsic and intrinsic motivation to use computers in the workplace
Journal of Applied Social Psychology
Cited by (648)
Looking beyond the hype: The challenges of blockchain adoption in accounting
2024, International Journal of Accounting Information SystemsWinners and losers of working-from home – The impact of perceived person-environment fit towards continuance intention
2024, Computers in Human BehaviorAntecedents of blockchain adoption in the poultry supply chain: An extended UTAUT model
2024, Technological Forecasting and Social ChangeBlockchain technology and supply chain performance: The role of trust and relational capabilities
2024, International Journal of Production EconomicsBlockchain and agency theory in supply chain management: A question of trust
2024, International Journal of Information Management
Dr Maciel M. Queiroz is a Researcher in Operations and Supply Chain Management at the Naval Architecture and Ocean Engineering Department of the University of São Paulo, Brazil. Maciel holds an MSc and a PhD in Naval Architecture and Ocean Engineering from the University of São Paulo. His current research interests focus on supply chain digital disruptions, digital supply chain capabilities, Industry 4.0, blockchain, big data, IoT, CPS, including the adoption and use of these technologies.
Dr Samuel Fosso Wamba is Full Professor at Toulouse Business School. Prior, He was Associate Professor at NEOMA Business School and Senior lecturer in the School of Information Systems & Technology, University of Wollongong, Australia. Dr Wamba successfully defended on September 2015 his Habilitation of Conducting Research in Management Science at the Telecom Business School, France. He earned his pH.D. in industrial engineering at the Polytechnic School of Montreal, Canada. He also holds two Masters degrees: one MSc in mathematics, from the University of Sherbrooke in Canada and another MSc in electronic commerce from HEC Montreal, Canada. He is CompTIA RFID + Certified Professional, Academic Co-Founder of RFID Academia.