Enhancing supply chain resilience through government subsidies and blockchain adoption: Ensuring sustainability and preventing disruptions

Abstract

As environmental protection becomes increasingly important, so does the significance of incorporating the recycling manufacturing model into the supply chain. Meanwhile, addressing supply chain disruption is imperative in the supply chain. To understand the relationship between remanufacturing and supply chain disruption, we studied the effect of supply chain disruption, remanufacturing, blockchain technology, and government subsidies on preventing supply chain disruption in the second period. There have two models in the following discussion. In the local market, a manufacturer M manufactures and recycles products for remanufacture in the second stage. At the same time, retailer R is responsible for the sales of products. We also add government subsidies and blockchain technology, discussing those roles in preventing supply chain disruptions in the second period. Blockchain technology and government subsidies are equally crucial in averting disruptions during the second period, although they may only provide partial protection against supply chain disruption.

The effects of government subsidy on manufacturers' technology sharing behavior with risk consideration

“…The first related stream regards government subsidy. This stream of research has demonstrated that government subsidy has a considerable effect on firms' production and pricing decisions (Guo et al, 2022; Li, Tong, et al, 2020; Song, Zhang, & Li, 2022) and on firms' profitability and market performance (Ma & Sun, 2023; Wang et al, 2021; Wang & Bai, 2023). In particular, Ma et al (2013) confirmed that COS could increase the consumers' surpluses and the manufacturers' product prices as well as their profits.…”

The interplay between blockchain adoption and green operations for a firm

“…Blockchain is an innovative technology that allows consumers to track product quality and supply chain information trustworthily, thereby improving consumers' trust in products or combating deceptive counterfeits (Choi, 2019; Ji et al, 2022; Pun et al, 2021; Xu, He, et al, 2023; Zhang et al, 2022). This emerging technology is adopted by firms from different industries and domains, such as multinational companies, to provide quality verification (Cao & Shen, 2022; Niu et al, 2021), second‐hand products (Shen, Xu, & Yuan, 2020), remanufacturing (Fang & Bai, 2024; Niu et al, 2022; Wang & Bai, 2023), agricultural products (Cao et al, 2022), and green technology companies (Xu, Zhang, et al, 2023; Xu & Duan, 2022). Considering the impacts of government subsidies and blockchain technology, Xu, Zhang, et al (2023) examined the optimal pricing and greenness of investment decisions for green products.…”