Blockchain application in recycling: from the supply chain perspective

Abstract

Recycling chains face evident challenges, including surging waste generation, insufficient recycling incentives and enforcement, fragmented traceability, and limited recycling network coordination. These challenges are particularly pronounced in the complex structures of multi-tier sustainable supply chains (MT-SSCM), where Blockchain technology (BCT) is often lauded as a potential ‘game-changer’. However, the transformative potential of BCT lacks empirical evidence, especially regarding how it can be effectively applied to recycling chains. The study commences with a comprehensive review of BCT functionalities, application drivers, technical feasibility, and potential performance. Subsequently, it employs a multiple-case study method to examine three companies that have successfully integrated BCT into their multi-tier recycling chains. Employing the Organisational Information Processing Theory (OIPT) as a framework, the study identifies three levels of information processing needs—firm, supply chain, and industry—and explores how BCT augments capabilities in transparency, immutability, integration, and trust. Additionally, the research delineates knowledge integration phases—transferring, translating, and transforming—while pinpointing visionary and structural boundary objects that facilitate this intricate process. This research stands as an early exploration into BCT application in the recycling sector, advancing the application of BCT in SSCM. It expands the body of knowledge by delineating a diverse multi-tier recycling framework. Theoretically, the study emphasises the critical role of information processing fit mechanisms, which are pivotal for enhancing performance in this domain. By employing a knowledge integration perspective, the research delineates how BCT can be effectively applied, thereby broadening the discourse on knowledge integration and the utility of boundary objects within recycling chains. The findings have been synthesised into a conceptual framework that incorporates the theoretical constructs of uncertainty in recycling chains, the capabilities enabled by BCT for information processing, and the mechanisms of knowledge integration. Practically, this study offers actionable insights for practitioners. It showcases a viable BCT-based recycling chain model that can aid practitioners in their pursuit of digital transformation towards sustainability. Additionally, it outlines further considerations for blockchain companies looking to pioneer feasible applications. For regulatory associations and other verification entities, BCT emerges as an invaluable tool to enhance supervision and trust.

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Identifiers

ORCID for Shenghao Xie: orcid.org/0000-0003-1134-5285

ORCID for Yu (Jack) Gong: orcid.org/0000-0002-5411-376X

ORCID for Martin Kunc: orcid.org/0000-0002-3411-4052

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