The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members
The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members
Blockchain technology is believed to leverage the potential of supply chain performance. However, its benefits and related costs need to be balanced when implementing blockchain solutions. This study constructs a dual-channel supply chain where a manufacturer sells products through both the direct sales channel and the retail channel. Three blockchain adoption scenarios are considered in this study. We analytically find the blockchain adoption strategies of supply chain members are dependent on unit blockchain-operational cost, direct selling cost, and demand volatility. When blockchain adoption is cost-effective and demand volatility is small and medium, the adoption of blockchain solutions by both the manufacturer and the e-retailer (Model B) is more beneficial for the individual and the supply chain, but if demand volatility is large, it is more advantageous when only the e-retailer initiates blockchain solutions (Model R). When blockchain adoption is costly and demand volatility is medium and large, it is more valuable when only the manufacturer initiates blockchain solutions (Model D). We also conduct numerical experiments to inspect the impacts of an imperfectly competitive market and the variation of stakeholders’ risk-averse level on the model to present the robustness of our results. Based on these findings, we further provide theoretical and practical guidance for supply chain managers in determining the optimal blockchain adoption scenarios in a dual-channel supply chain.
Zhang, Tianyu
298fd594-4648-4a21-aec9-8c1160b4cb91
Dong, Peiwu
707715d2-7be1-43d3-9c08-c9cc0c35f9e7
Chen, Xiangfeng
8e2dd838-07d6-4e17-8c04-94cf86dc1090
Gong, Yu
86c8d37a-744d-46ab-8b43-18447ccaf39c
8 September 2022
Zhang, Tianyu
298fd594-4648-4a21-aec9-8c1160b4cb91
Dong, Peiwu
707715d2-7be1-43d3-9c08-c9cc0c35f9e7
Chen, Xiangfeng
8e2dd838-07d6-4e17-8c04-94cf86dc1090
Gong, Yu
86c8d37a-744d-46ab-8b43-18447ccaf39c
Zhang, Tianyu, Dong, Peiwu, Chen, Xiangfeng and Gong, Yu
(2022)
The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members.
Omega, 114, [102747].
(doi:10.1016/j.omega.2022.102747).
Abstract
Blockchain technology is believed to leverage the potential of supply chain performance. However, its benefits and related costs need to be balanced when implementing blockchain solutions. This study constructs a dual-channel supply chain where a manufacturer sells products through both the direct sales channel and the retail channel. Three blockchain adoption scenarios are considered in this study. We analytically find the blockchain adoption strategies of supply chain members are dependent on unit blockchain-operational cost, direct selling cost, and demand volatility. When blockchain adoption is cost-effective and demand volatility is small and medium, the adoption of blockchain solutions by both the manufacturer and the e-retailer (Model B) is more beneficial for the individual and the supply chain, but if demand volatility is large, it is more advantageous when only the e-retailer initiates blockchain solutions (Model R). When blockchain adoption is costly and demand volatility is medium and large, it is more valuable when only the manufacturer initiates blockchain solutions (Model D). We also conduct numerical experiments to inspect the impacts of an imperfectly competitive market and the variation of stakeholders’ risk-averse level on the model to present the robustness of our results. Based on these findings, we further provide theoretical and practical guidance for supply chain managers in determining the optimal blockchain adoption scenarios in a dual-channel supply chain.
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Zhang et al. (2023) version 1 The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members
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Accepted/In Press date: 21 August 2022
e-pub ahead of print date: 24 August 2022
Published date: 8 September 2022
Additional Information:
Funding Information:
The authors are extremely grateful to the anonymous referees for their valuable and helpful comments and suggestions. This researh is supported by the National Natural Science Foundation of China (Grants 72232002 , 71872051 and 71873015 ).
Publisher Copyright:
© 2022 Elsevier Ltd
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Local EPrints ID: 472168
URI: http://eprints.soton.ac.uk/id/eprint/472168
ISSN: 0305-0483
PURE UUID: 0b23619d-14f2-4abe-bf82-6c7c2bf25c76
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Date deposited: 28 Nov 2022 18:02
Last modified: 08 Sep 2024 04:01
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Author:
Tianyu Zhang
Author:
Peiwu Dong
Author:
Xiangfeng Chen
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