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Blockchain and sustainable supply chain management in developing countries
Institution:1. College of Statistics and Data Science, Faculty of Science, Beijing University of Technology, Beijing 100124, China;2. Research Center for Smarter Supply Chain, Dongwu Business School, Soochow University, Suzhou, Jiangsu, 215021, China;1. Department of Industrial Engineering, University of Naples Federico II, P. le Tecchio 80, 80125, Naples, Italy;2. Department of Engineering, University of Naples Parthenope, Centro Direzionale di Napoli Isola C4, 80143, Naples, Italy;3. Department of Management, Finance and Technology, University LUM Giuseppe Degennaro, S.S. 100, Km 18, Casamassima-Bari, Italy
Abstract:Theoretical, empirical and anecdotal evidence suggests that there are more violations of sustainability principles in supply chains in developing countries than in developed countries. Recent research has demonstrated that blockchain can play an important role in promoting supply chain sustainability. In this paper we argue that blockchain’s characteristics are especially important for enforcing sustainability standards in developing countries. We analyze multiple case studies of blockchain projects implemented in supply chains in developing countries to assess product quality, environmental accounting and social impact measurement. We have developed seven propositions, which describe how blockchain can help address a number of challenges various stakeholders face in promoting sustainable supply chains in developing countries. The challenges that the propositions deal with include those associated with an unfavorable institutional environment, high costs, technological limitations, unequal power distribution among supply chain partners and porosity and opacity of value delivery networks.
Keywords:Blockchain  Developing countries  Ethical dilemmas  Institutions  Smart contract  Supply chain  Sustainability  Traceability
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