Vertical coordination in agri‐food supply chain and blockchain: A proposed framework solution for Vietnamese cashew nut business

Abstract

The agri‐food supply chain has been a popular research topic in recent years. The combination of a demand for products of high quality and safety standards and the increasing number of stakeholders in supply chain networks has required the agri‐food business to transform from vertically integrated to vertically operated supply chain networks. Nevertheless, this traditional agri‐food supply chain form has exposure to some drawbacks. Meanwhile, blockchain technology as a disruptive technology today has the potential to provide value‐added contributions towards multiple‐disciplinary applications. Blockchain technology gains success and proves its functionality in improving the current supply chain by ensuring traceability, transparency and efficiency across the network from farmer to consumer. Therefore, the purpose of this paper is to review the existing literature on vertical coordination in the supply chain and its mechanism and to develop a framework that explores how blockchain technology can address the challenges in coordination mechanisms. Furthermore, taking the current Vietnamese vertical coordination cashew supply chain as a case study, this research is based on the proposed framework to suggest a solution combining blockchain and other relative technologies for the Vietnamese cashew business. This paper will close a research gap, as the blockchain‐based supply chain for Vietnam cashew nuts has potential benefits for each supply chain actor in terms of effectiveness in operations, costs and time‐saving, and human resources.

The potential for blockchain to improve small-scale agri-food business’ supply chain resilience: a systematic review

“…Blockchain technology can improve supply chain efficiency and reduce costs in small agri-food business supply networks by eliminating middlemen and enabling a direct exchange of products (Peng et al. , 2022; Chu and Pham, 2022). Lucena et al .…”

“…Despite the seeming benefits of blockchain application for the small-scale agri-food business sector, certain challenges persist that limit application therein (Rogerson and Parry, 2020; van Hilten et al. , 2020; Chu and Pham, 2022; Tharatipyakul et al. , 2022; Chandan et al.…”

“…Blockchain technology can increase supply chain transparency by offering a secure and decentralised platform for information recording and sharing, promoting better coordination, visibility and trust (Rejeb et al, 2020). Blockchain technology can improve supply chain efficiency and reduce costs in small agri-food business supply networks by eliminating middlemen and enabling a direct exchange of products (Peng et al, 2022;Chu and Pham, 2022). Lucena et al (2018) reported that blockchain technology can improve food safety by enabling real-time monitoring of the supply chain, reducing the risk of food contamination and increasing the speed and accuracy of food recalls.…”

“…These include concerns over the disclosure of trade secrets (Rogerson and Parry, 2020;Tharatipyakul et al, 2022), incomplete or inaccurate information (Tharatipyakul et al, 2022) and economic and technical challenges (Compagnucci et al, 2022). Other challenges reported include high transaction and information management costs (Chu and Pham, 2022), a lack of willingness to pay for the technology, a lack of trust in the technology, human error and concerns over governance of process-related issues (Rogerson and Parry, 2020). According to Chu and Pham (2022) despite the significant benefits of applying blockchain technology to the cashew supply chain in Vietnam, the lack of investment in developing agricultural platforms and blockchain infrastructure limits its application.…”

“…Key challenges identified in this review that limit the implementation of blockchain and other distributed ledger technologies (DLTs) for small agri-food businesses include concerns over trade and business secrets disclosures (Rogerson and Parry, 2020;Rejeb et al, 2020, Tharatipyakul et al, 2022, incomplete or inaccurate information (Tharatipyakul et al, 2022) and economic and technical challenges (Compagnucci et al, 2022), including the high cost of establishment and maintenance (Rejeb et al, 2020). Other challenges include high transaction and information management costs (Chu and Pham, 2022), unwillingness to pay for the technology, lack of trust in the technology, human error and concerns over governance of process-related issues (Rejeb et al, 2020;Rogerson and Parry, 2020). These findings offer insights and recommendations for policymakers, industry stakeholders and small-scale agrifood businesses on how to harness blockchain technology to enhance their resilience and competitiveness in the supply chain.…”