Blockchain Adoption for Sustainable Supply Chain Management: Economic, Environmental, and Social Perspectives

Abstract

Due to the rapid increase in environmental degradation and depletion of natural resources, the focus of researchers is shifted from economic to socio-environmental problems. Blockchain is a disruptive technology that has the potential to restructure the entire supply chain for sustainable practices. Blockchain is a distributed ledger that provides a digital database for recording all the transactions of the supply chain. The main purpose of this research is to explore the literature relevant to blockchain for sustainable supply chain management. The focus of this review is on the sustainability of the blockchain-based supply chain concerning environmental conservation, social equality, and governance effectiveness. Using a systematic literature review, a total of 136 articles were evaluated and categorized according to the triple bottom-line aspects of sustainability. Challenges and barriers during blockchain adoption in different industrial sectors such as aviation, shipping, agriculture and food, manufacturing, automotive, pharmaceutical, and textile industries were critically examined. This study has not only explored the economic, environmental, and social impacts of blockchain but also highlighted the emerging trends in a circular supply chain with current developments of advanced technologies along with their critical success factors. Furthermore, research areas and gaps in the existing research are discussed, and future research directions are suggested. The findings of this study show that blockchain has the potential to revolutionize the entire supply chain from a sustainability perspective. Blockchain will not only improve the economic sustainability of the supply chain through effective traceability, enhanced visibility through information sharing, transparency in processes, and decentralization of the entire structure but also will help in achieving environmental and social sustainability through resource efficiency, accountability, smart contracts, trust development, and fraud prevention. The study will be helpful for managers and practitioners to understand the procedure of blockchain adoption and to increase the probability of its successful implementation to develop a sustainable supply chain network.

Does blockchain adoption engender environmental sustainability? The mediating role of customer integration

“…Subsequently, ESCP refers to the degree to which SC activities and practices contribute to environmental sustainability (Najjar et al, 2022). This includes reducing carbon footprint, minimizing waste generation, optimizing resource consumption and promoting eco-friendly practices (Munir et al, 2022). In accordance, knowledge management plays a vital role in improving ESCP by capturing, disseminating and utilizing environmental knowledge within the SC (Elbarky et al, 2023).…”

“…This advantage can be achieved by focusing on delivering value to customers through improved environmental performance (Hu et al, 2022). Government organizations, regulatory bodies, and customers are pressuring organizations to restructure their internal and external supply chain (SC) structures to address environmental concerns (Munir et al, 2022). As a result, SC professionals have shifted their focus from economic benefits to socioenvironmental benefits in response to high rates of environmental degradation and depletion of natural resources (Hong and Gasparatos, 2020).…”

“…In fact, given the reality of industrialization and urbanization conforming to increased human activity, environmental practices have become even more critical (Biswas et al, 2023). Accordingly, sustainable practices such as green SCs are now becoming critical areas for investigation, as they withhold a string of green initiative activities in all procedures under the ratification of reuse, recycle and circular SC (Munir et al, 2022). Environmental activities such as reuse can help in reducing waste and cost by recapturing value from used products (Ye and Lau, 2022), which can increase customer satisfaction and loyalty (U-Dominic et al, 2021).…”

“…Among the recently developed Industry 4.0 technologies that enhance business processes and integration, BCT is one of the most promising, particularly in terms of sustainability (Kouhizadeh et al, 2022;Munir et al, 2022). BCT has the potential to revolutionize SCs in terms of economic, social and environmental sustainability through its governance and information management capabilities (Saberi et al, 2018;Yadav and Singh, 2019).…”

“…These capabilities enhance SC players' awareness of sustainable practices while enhancing SC performance outcomes (Kouhizadeh and Sarkis, 2018). Moreover, BCT can improve SC visibility through information sharing and decentralization of the entire SC structure, thereby improving coordination and integration amongst stakeholders (Munir et al, 2022;Chang et al, 2019;Saberi et al, 2018). Arguably, this emphasizes that customer integration within SCs is crucial for enhancing collaborations, responsiveness and customer satisfaction, ultimately leading to improved efficiency and competitiveness (Hamilton-Ibama and Ogonu, 2021).…”