Blockchain and Its Impacts on Agri-Food Supply Chain Network Management

Abstract

Blockchain is an emerging meta-technology and considered a new institutional technology with the potential to change the governance of vertically integrated food supply chains. This paper investigates the effects on coordination mechanisms in vertically cooperating agri-food networks that result from the implementation of different blockchain technology platform types (BCTPT). The research is based on an extensive literature overview and exploratory use cases of BCTPT implementations in the agri-food industry which are presented to illustrate the applicability of the findings. Our analysis shows that BCTPT predominantly differentiate through the coordination mechanisms exerting of power, information sharing, decision-making, and collective learning benefits. We also reveal that blockchain use cases with high success rates typically operate in a vertical ecosystem where a focal firm assumes the responsibility for coordinating the activities in the supply chain network. These use cases are typically operationalized in tracking and tracing applications as well as in provenance-based information provision, which either operate in vertically coordinated private blockchain or consortium-type blockchain platforms. We conclude that the choice of a specific BCTPT with its respective coordination mechanisms is a key determinant of the economic success of the intended use case, the efficient management of the supply chain network, and eventually for the chosen digital business model. This paper will close a research gap, as the potential impacts of different blockchain technology platform types on digital agri-food business models and its supply chain management have scarcely been researched.

Guest editorialEmerging research and future pathways in digital supply chain governance

“…Regarding specific digital technologies, the interest in blockchain and its effect on governance is mainly driven by its promise to allow traceabilityan aspect of supply chain visibility that enables the firm to ascertain provenance (Schmidt and Wagner, 2019;Ghode et al, 2020;Hastig and Sodhi, 2020) and ensure the authenticity of the shared information. This permits a more effective management of the ownership of the data, and it reduces the risk of information asymmetry and opportunistic conduct in the supply chain due to improved transparency (Kurpjuweit et al, 2021;Kramer et al, 2021). On the one hand, transparency and immutability to existing database functionalities provided by the blockchain technology can alter transactional exchange relationships by lowering uncertainty and opportunism which enables more market-oriented governance structures (Schmidt and Wagner, 2019).…”

Blockchain-Based Model to Improve the Performance of the Next-Generation Digital Supply Chain

“…The findings were then compared to agri-food industry use cases. The authors claimed that the properties of supply chain coordination mechanisms vary based on the blockchain platform chosen, and that the chosen platform has an impact on the economic performance of the proposed business model [22]. J. Nurgazina et al aimed to highlight the existing practical uses of distributed ledger technology and internet of things in food supply chain.…”

Evolutionary Game Analysis of Blockchain Technology Preventing Supply Chain Financial Risks

“…The ASC is characterized by regionality, seasonality, the scattered connection of market subjects, uncertain output, many hierarchical nodes, and asymmetric information [33,34], which leads to the lengthening of the accounts receivable cycle of agricultural products farmers and the obvious tendency of subject immobilization.…”