IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v32y2023i7p4821-4840.html
   My bibliography  Save this article

Building blockchain‐driven dynamic capabilities for developing circular supply chain: Rethinking the role of sensing, seizing, and reconfiguring

Author

Listed:
  • Matthew Quayson
  • Chunguang Bai
  • Lihua Sun
  • Joseph Sarkis

Abstract

Globally, firms face increasing pressure to efficiently utilize resources and minimize costs and may do so through sustainable supply chains and circular economy practices. Emerging technologies, such as blockchain, to enable a circular economy have become a new industrial paradigm. However, firms require building dynamic capabilities through blockchain, which can be key to realizing circular economy model. This study introduces a framework for building blockchain‐driven dynamic capabilities for a circular supply chain. We further use the Decision Making Trial and Evaluation Laboratory (DEMATEL) method to evaluate three major dynamic capabilities and 18 sub‐dynamic capabilities and their interrelationships. The mining industry in Ghana sets the stage for this analysis. The study results show that although blockchain‐driven sensing dynamic capability, seizing dynamic capability, and reconfiguring dynamic capability are crucial for developing a circular supply chain, they do not strictly follow a sequence and overlap. We highlight various cause–effect relationships, providing insights into the role of sensing, seizing, and reconfiguring dynamic capabilities. That information is important to firms, stakeholders, and partners to draft an appropriate strategy to build blockchain‐driven dynamic capabilities for developing a circular supply chain.

Suggested Citation

  • Matthew Quayson & Chunguang Bai & Lihua Sun & Joseph Sarkis, 2023. "Building blockchain‐driven dynamic capabilities for developing circular supply chain: Rethinking the role of sensing, seizing, and reconfiguring," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4821-4840, November.
    • Handle: RePEc:bla:bstrat:v:32:y:2023:i:7:p:4821-4840
    DOI: 10.1002/bse.3395
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3395
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sanjay Kumar Singh & Manlio Del Giudice & Charbel Jose Chiappetta Jabbour & Hengky Latan & Amrik Singh Sohal, 2022. "Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: The role of green dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 500-514, January.
    2. David J. Teece & Greg Linden, 2017. "Business models, value capture, and the digital enterprise," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-14, December.
    3. Sara Saberi & Mahtab Kouhizadeh & Joseph Sarkis & Lejia Shen, 2019. "Blockchain technology and its relationships to sustainable supply chain management," International Journal of Production Research, Taylor & Francis Journals, vol. 57(7), pages 2117-2135, April.
    4. Jean D. Kabongo & Olivier Boiral, 2017. "Doing More with Less: Building Dynamic Capabilities for Eco‐Efficiency," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 956-971, November.
    5. Owais Khan & Tiberio Daddi & Fabio Iraldo, 2020. "The role of dynamic capabilities in circular economy implementation and performance of companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 3018-3033, November.
    6. Alex Pazaitis & Primavera De Filippi & Vasilis Kostakis, 2017. "Blockchain and Value Systems in the Sharing Economy: The Illustrative Case of Backfeed," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 73, TUT Ragnar Nurkse Department of Innovation and Governance.
    7. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    8. Morkunas, Vida J. & Paschen, Jeannette & Boon, Edward, 2019. "How blockchain technologies impact your business model," Business Horizons, Elsevier, vol. 62(3), pages 295-306.
    9. Ying-Ying Hsieh & Jean-Philippe Vergne & Philip Anderson & Karim Lakhani & Markus Reitzig, 2018. "Bitcoin and the rise of decentralized autonomous organizations," Journal of Organization Design, Springer;Organizational Design Community, vol. 7(1), pages 1-16, December.
    10. Upadhyay, Arvind & Laing, Tim & Kumar, Vikas & Dora, Manoj, 2021. "Exploring barriers and drivers to the implementation of circular economy practices in the mining industry," Resources Policy, Elsevier, vol. 72(C).
    11. Yong, Binbin & Shen, Jun & Liu, Xin & Li, Fucun & Chen, Huaming & Zhou, Qingguo, 2020. "An intelligent blockchain-based system for safe vaccine supply and supervision," International Journal of Information Management, Elsevier, vol. 52(C).
    12. Kusi-Sarpong, Simonov & Orji, Ifeyinwa Juliet & Gupta, Himanshu & Kunc, Martin, 2021. "Risks associated with the implementation of big data analytics in sustainable supply chains," Omega, Elsevier, vol. 105(C).
    13. Igogo, Tsisilile & Awuah-Offei, Kwame & Newman, Alexandra & Lowder, Travis & Engel-Cox, Jill, 2021. "Integrating renewable energy into mining operations: Opportunities, challenges, and enabling approaches," Applied Energy, Elsevier, vol. 300(C).
    14. Vanessa Prieto‐Sandoval & Carmen Jaca & Javier Santos & Rupert J. Baumgartner & Marta Ormazabal, 2019. "Key strategies, resources, and capabilities for implementing circular economy in industrial small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1473-1484, November.
    15. Nadia Zahoor & Yong Kyu Lew, 2022. "Sustaining superior international performance: Strategic orientations and dynamic capability of environmentally concerned small‐ and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1002-1017, March.
    16. Fu, Xiaoyong & Zhu, Qinghua & Sarkis, Joseph, 2012. "Evaluating green supplier development programs at a telecommunications systems provider," International Journal of Production Economics, Elsevier, vol. 140(1), pages 357-367.
    17. Sahebi, Iman Ghasemian & Masoomi, Behzad & Ghorbani, Shahryar, 2020. "Expert oriented approach for analyzing the blockchain adoption barriers in humanitarian supply chain," Technology in Society, Elsevier, vol. 63(C).
    18. Md. Abdul Moktadir & Anil Kumar & Syed Mithun Ali & Sanjoy Kumar Paul & Razia Sultana & Jafar Rezaei, 2020. "Critical success factors for a circular economy: Implications for business strategy and the environment," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3611-3635, December.
    19. Zhou, Steven S & Zhou, Abby J & Feng, Junzheng & Jiang, Shisong, 2019. "Dynamic capabilities and organizational performance: The mediating role of innovation," Journal of Management & Organization, Cambridge University Press, vol. 25(5), pages 731-747, September.
    20. Manavalan Ethirajan & Thanigai Arasu M & Jayakrishna Kandasamy & Vimal K.E.K & Simon Peter Nadeem & Anil Kumar, 2021. "Analysing the risks of adopting circular economy initiatives in manufacturing supply chains," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 204-236, January.
    21. Guia Bianchi & Francesco Testa & Sara Tessitore & Fabio Iraldo, 2022. "How to embed environmental sustainability: The role of dynamic capabilities and managerial approaches in a life cycle management perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 312-325, January.
    22. Chunguang Bai & Joseph Sarkis, 2020. "A supply chain transparency and sustainability technology appraisal model for blockchain technology," International Journal of Production Research, Taylor & Francis Journals, vol. 58(7), pages 2142-2162, April.
    23. Tomas Santa‐Maria & Walter J. V. Vermeulen & Rupert J. Baumgartner, 2022. "How do incumbent firms innovate their business models for the circular economy? Identifying micro‐foundations of dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1308-1333, May.
    24. Moritz Böhmecke‐Schwafert & Marie Wehinger & Robin Teigland, 2022. "Blockchain for the circular economy: Theorizing blockchain's role in the transition to a circular economy through an empirical investigation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3786-3801, December.
    25. Sayantan Khanra & Puneet Kaur & Rojers P Joseph & Ashish Malik & Amandeep Dhir, 2022. "A resource‐based view of green innovation as a strategic firm resource: Present status and future directions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1395-1413, May.
    26. Joon-Seok Kim & Nina Shin, 2019. "The Impact of Blockchain Technology Application on Supply Chain Partnership and Performance," Sustainability, MDPI, vol. 11(21), pages 1-17, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jefferson Leandro Schmidt & Simone Sehnem & Juliano Danilo Spuldaro, 2024. "Blockchain and the transition to the circular economy: A literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2010-2032, May.
    2. Osei, Vivian & Bai, Chunguang & Asante-Darko, Disraeli & Quayson, Matthew, 2023. "Evaluating the barriers and drivers of adopting circular economy for improving sustainability in the mining industry," Resources Policy, Elsevier, vol. 86(PB).
    3. Quayson, Matthew & Bai, Chunguang & Mahmoudi, Amin & Hu, Weihao & Chen, Wei & Omoruyi, Osayuwamen, 2023. "Designing a decision support tool for integrating ESG into the natural resource extraction industry for sustainable development using the ordinal priority approach," Resources Policy, Elsevier, vol. 85(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luca Marrucci & Tiberio Daddi & Fabio Iraldo, 2022. "Do dynamic capabilities matter? A study on environmental performance and the circular economy in European certified organisations," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2641-2657, September.
    2. Anna M. Walker & Alberto Simboli & Walter J. V. Vermeulen & Andrea Raggi, 2023. "A dynamic capabilities perspective on implementing the Circular Transition Indicators: A case study of a multi‐national packaging company," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2679-2692, September.
    3. Danni Zhang & Regina Frei & Gary Wills & Enrico Gerding & Steffen Bayer & Prince Kwame Senyo, 2023. "Strategies and practices to reduce the ecological impact of product returns: An environmental sustainability framework for multichannel retail," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4636-4661, November.
    4. Roberta De Angelis & Robert Morgan & Luigi M. De Luca, 2023. "Open strategy and dynamic capabilities: A framework for circular economy business models research," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4861-4873, November.
    5. Owais Khan & Tiberio Daddi & Fabio Iraldo, 2020. "The role of dynamic capabilities in circular economy implementation and performance of companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 3018-3033, November.
    6. Kirti Nayal & Rakesh D. Raut & Balkrishna E. Narkhede & Pragati Priyadarshinee & Gajanan B. Panchal & Vidyadhar V. Gedam, 2023. "Antecedents for blockchain technology-enabled sustainable agriculture supply chain," Annals of Operations Research, Springer, vol. 327(1), pages 293-337, August.
    7. Latan, Hengky & Lopes de Sousa Jabbour, Ana Beatriz & Sarkis, Joseph & Chiappetta Jabbour, Charbel Jose & Ali, Murad, 2024. "The nexus of supply chain performance and blockchain technology in the digitalization era: Insights from a fast-growing economy," Journal of Business Research, Elsevier, vol. 172(C).
    8. Friedman, Nicola & Ormiston, Jarrod, 2022. "Blockchain as a sustainability-oriented innovation?: Opportunities for and resistance to Blockchain technology as a driver of sustainability in global food supply chains," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    9. Arim Park & Huan Li, 2021. "The Effect of Blockchain Technology on Supply Chain Sustainability Performances," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    10. Vincenzo Varriale & Antonello Cammarano & Francesca Michelino & Mauro Caputo, 2020. "The Unknown Potential of Blockchain for Sustainable Supply Chains," Sustainability, MDPI, vol. 12(22), pages 1-16, November.
    11. Kouhizadeh, Mahtab & Saberi, Sara & Sarkis, Joseph, 2021. "Blockchain technology and the sustainable supply chain: Theoretically exploring adoption barriers," International Journal of Production Economics, Elsevier, vol. 231(C).
    12. Xiaoli Guo & Weili Xia & Taiwen Feng & Jianyu Tan & Fenggang Xian, 2024. "Blockchain technology adoption and sustainable supply chain finance: The perspective of information processing theory," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3614-3632, July.
    13. Zhu, Qingyun & Bai, Chunguang & Sarkis, Joseph, 2022. "Blockchain technology and supply chains: The paradox of the atheoretical research discourse," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    14. Tomas Santa‐Maria & Walter J. V. Vermeulen & Rupert J. Baumgartner, 2022. "How do incumbent firms innovate their business models for the circular economy? Identifying micro‐foundations of dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1308-1333, May.
    15. Alessandra Neri & Marta Negri & Enrico Cagno & Vikas Kumar & Jose Arturo Garza‐Reyes, 2023. "What digital‐enabled dynamic capabilities support the circular economy? A multiple case study approach," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 5083-5101, November.
    16. Arnaldo Coelho & Jorge Ferreira & Catarina Proença, 2024. "The impact of green entrepreneurial orientation on sustainability performance through the effects of green product and process innovation: The moderating role of ambidexterity," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3184-3202, May.
    17. Yadav, Amit Kumar & Shweta, & Kumar, Dinesh, 2023. "Blockchain technology and vaccine supply chain: Exploration and analysis of the adoption barriers in the Indian context," International Journal of Production Economics, Elsevier, vol. 255(C).
    18. Sachin S. Kamble & Angappa Gunasekaran & Nachiappan Subramanian & Abhijeet Ghadge & Amine Belhadi & Mani Venkatesh, 2023. "Blockchain technology’s impact on supply chain integration and sustainable supply chain performance: evidence from the automotive industry," Annals of Operations Research, Springer, vol. 327(1), pages 575-600, August.
    19. Sharfuddin Ahmed Khan & Muhammad Shujaat Mubarik & Simonov Kusi‐Sarpong & Himanshu Gupta & Syed Imran Zaman & Mobashar Mubarik, 2022. "Blockchain technologies as enablers of supply chain mapping for sustainable supply chains," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3742-3756, December.
    20. Jefferson Leandro Schmidt & Simone Sehnem & Juliano Danilo Spuldaro, 2024. "Blockchain and the transition to the circular economy: A literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2010-2032, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:32:y:2023:i:7:p:4821-4840. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.