The impact of consumer skepticism on blockchain-enabled sustainability disclosure in a supply chain
The impact of consumer skepticism on blockchain-enabled sustainability disclosure in a supply chain
The growing recognition of sustainable supply chain practices is indisputable. Nevertheless, consumer skepticism regarding the credibility of product sustainability information, which includes environmental impact and social responsibility, poses a significant challenge. Blockchain-enabled disclosure has surfaced as a promising approach to address this skepticism. In this paper, a game-theoretical model is developed to investigate the investment strategy in blockchain-enabled disclosure within a supply chain composed of one retailer and two manufacturers, each selling products with varying levels of sustainability. Considering consumer skepticism, we assume that consumers who trust sustainability information are willing to pay a premium for sustainable products, while skeptical consumers are not. Our analysis suggests that blockchain-enabled disclosure can effectively increase consumer trust in sustainability information and promote sustainable practices. However, our findings reveal a potential pitfall: intensified market competition between manufacturers, leading to reduced profits for both, while the retailer persistently benefits from blockchain-enabled disclosure. Furthermore, we find non-monotonic effects of consumer skepticism on retailer and manufacturer profits, with certain conditions resulting in a decreased likelihood of investing in blockchain-enabled disclosure as skepticism increases. Lastly, we examine the government-mandated disclosure policy, illustrating that such policy can generate a win–win situation for society and the environment by improving social welfare and environmental performance.
Blockchain-enabled disclosure, Consumer skepticism, Game theory, Supply chain management, Sustainability
Zhou, Yu
28ed56a3-d1b7-4e6c-8033-4df61e37ab95
Yan, Shuangqi
5e767e31-1da9-4bb7-854e-36ab6ec13c13
Li, Gendao
7877dfbc-4bfb-451c-aa1c-c21efdbce452
Xiong, Yu
7d2bcb97-92ae-41b2-9e53-c32de16c9e56
Lin, Zhibin
14dde0d0-1a3c-4e19-9e3b-4254441e3b4c
15 October 2023
Zhou, Yu
28ed56a3-d1b7-4e6c-8033-4df61e37ab95
Yan, Shuangqi
5e767e31-1da9-4bb7-854e-36ab6ec13c13
Li, Gendao
7877dfbc-4bfb-451c-aa1c-c21efdbce452
Xiong, Yu
7d2bcb97-92ae-41b2-9e53-c32de16c9e56
Lin, Zhibin
14dde0d0-1a3c-4e19-9e3b-4254441e3b4c
Zhou, Yu, Yan, Shuangqi, Li, Gendao, Xiong, Yu and Lin, Zhibin
(2023)
The impact of consumer skepticism on blockchain-enabled sustainability disclosure in a supply chain.
Transportation Research Part E: Logistics and Transportation Review, 179, [103323].
(doi:10.1016/j.tre.2023.103323).
Abstract
The growing recognition of sustainable supply chain practices is indisputable. Nevertheless, consumer skepticism regarding the credibility of product sustainability information, which includes environmental impact and social responsibility, poses a significant challenge. Blockchain-enabled disclosure has surfaced as a promising approach to address this skepticism. In this paper, a game-theoretical model is developed to investigate the investment strategy in blockchain-enabled disclosure within a supply chain composed of one retailer and two manufacturers, each selling products with varying levels of sustainability. Considering consumer skepticism, we assume that consumers who trust sustainability information are willing to pay a premium for sustainable products, while skeptical consumers are not. Our analysis suggests that blockchain-enabled disclosure can effectively increase consumer trust in sustainability information and promote sustainable practices. However, our findings reveal a potential pitfall: intensified market competition between manufacturers, leading to reduced profits for both, while the retailer persistently benefits from blockchain-enabled disclosure. Furthermore, we find non-monotonic effects of consumer skepticism on retailer and manufacturer profits, with certain conditions resulting in a decreased likelihood of investing in blockchain-enabled disclosure as skepticism increases. Lastly, we examine the government-mandated disclosure policy, illustrating that such policy can generate a win–win situation for society and the environment by improving social welfare and environmental performance.
Text
Accepted Manuscript-The Impact of Consumer Skepticism on Blockchain-Enabled Sustainability Disclosure in a Supply Chain
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Restricted to Repository staff only until 15 October 2026.
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More information
Accepted/In Press date: 8 October 2023
e-pub ahead of print date: 15 October 2023
Published date: 15 October 2023
Additional Information:
Funding Information:
The work of Y. Zhou was supported by the National Natural Science Foundation of China under grant [ 72371040, 71971033 ].
Keywords:
Blockchain-enabled disclosure, Consumer skepticism, Game theory, Supply chain management, Sustainability
Identifiers
Local EPrints ID: 484613
URI: http://eprints.soton.ac.uk/id/eprint/484613
ISSN: 1366-5545
PURE UUID: 1c8a7bb6-1670-445a-86df-77234155c399
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Date deposited: 17 Nov 2023 18:03
Last modified: 18 Mar 2024 04:14
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Contributors
Author:
Yu Zhou
Author:
Shuangqi Yan
Author:
Gendao Li
Author:
Yu Xiong
Author:
Zhibin Lin
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