IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v276y2024ics0925527324002299.html
   My bibliography  Save this article

Implementation mode selection for blockchain technology in green product traceability

Author

Listed:
  • Lu, Qihui
  • Liao, Changhua
  • Shi, Victor
  • Xu, Zeping

Abstract

Implementing blockchain technology to improve traceability can enhance consumer trust in green supply chains. However, the associated high fixed costs can pose challenges for companies when choosing the implementation mode. In this study, we investigate the value of blockchain adoption and explore a manufacturer’s choice between third-party or self-implementation. Specifically, we consider the traceability level and the greenness degree in a supply chain comprising a manufacturer, a retailer, and a third-party platform providing blockchain services. Our findings indicate that self-implementation by the manufacturer increases the degree of greenness, and the retailer’s involvement in decisions about traceability levels improves the manufacturer’s traceability level. The highest profits for supply chain members are achieved when both parties opt for self-implementation. Additionally, self-implementation outperforms third-party platform implantation when incentivizing the manufacturer to invest more in green and blockchain technologies. Consequently, blockchain technology’s value exceeds its costs, encouraging supply chain members to select self-implementation whenever possible. However, when the fixed costs or the cost coefficient of green investment or traceability are excessively high, the manufacturer may need to outsource blockchain services to a third-party platform. Furthermore, through comprehensive system dynamics analysis, we find that blockchain’s adoption or non-adoption and imposing an investment cap on the product’s green degree have a little effect on profitability for suppliers, manufacturers, logistics providers, and third-party platforms.

Suggested Citation

  • Lu, Qihui & Liao, Changhua & Shi, Victor & Xu, Zeping, 2024. "Implementation mode selection for blockchain technology in green product traceability," International Journal of Production Economics, Elsevier, vol. 276(C).
    • Handle: RePEc:eee:proeco:v:276:y:2024:i:c:s0925527324002299
    DOI: 10.1016/j.ijpe.2024.109372
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527324002299
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2024.109372?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ji Jiang & Jin Chen, 2021. "Managing the Product-Counterfeiting Problem with a Blockchain-Supported E-Commerce Platform," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    2. Saak, Alexander E., 2016. "Traceability and reputation in supply chains," International Journal of Production Economics, Elsevier, vol. 177(C), pages 149-162.
    3. Li, Juntao & Liu, Pengfei, 2022. "Modeling green supply chain games with governmental interventions and risk preferences under fuzzy uncertainties," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 192(C), pages 182-200.
    4. Maher Agi & Rohit Nishant, 2017. "Understanding influential factors on implementing green supply chain management practices: An interpretive structural modelling analysis," Post-Print hal-02005891, HAL.
    5. Bin Shen & Ciwei Dong & Stefan Minner, 2022. "Combating Copycats in the Supply Chain with Permissioned Blockchain Technology," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 138-154, January.
    6. Choi, Tsan-Ming & Guo, Shu & Liu, Na & Shi, Xiutian, 2020. "Optimal pricing in on-demand-service-platform-operations with hired agents and risk-sensitive customers in the blockchain era," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1031-1042.
    7. Niu, Baozhuang & Dong, Jian & Liu, Yaoqi, 2021. "Incentive alignment for blockchain adoption in medicine supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    8. Choi, Tsan-Ming, 2019. "Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 17-29.
    9. Bai, Qingguo & Chen, Jiguang & Xu, Jianteng, 2023. "Energy conservation investment and supply chain structure under cap-and-trade regulation for a green product," Omega, Elsevier, vol. 119(C).
    10. Ji, Jingna & Zhang, Zhiyong & Yang, Lei, 2017. "Comparisons of initial carbon allowance allocation rules in an O2O retail supply chain with the cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 187(C), pages 68-84.
    11. De Giovanni, Pietro, 2020. "Blockchain and smart contracts in supply chain management: A game theoretic model," International Journal of Production Economics, Elsevier, vol. 228(C).
    12. Dutta, Pankaj & Choi, Tsan-Ming & Somani, Surabhi & Butala, Richa, 2020. "Blockchain technology in supply chain operations: Applications, challenges and research opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    13. Kshetri, Nir, 2018. "1 Blockchain’s roles in meeting key supply chain management objectives," International Journal of Information Management, Elsevier, vol. 39(C), pages 80-89.
    14. Xu, Xiaoping & He, Ping & Xu, Hao & Zhang, Quanpeng, 2017. "Supply chain coordination with green technology under cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 433-442.
    15. Li, Zhiwen & Xu, Xianhao & Bai, Qingguo & Guan, Xu & Zeng, Kuan, 2021. "The interplay between blockchain adoption and channel selection in combating counterfeits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    16. Niu, Baozhuang & Mu, Zihao & Cao, Bin & Gao, Jie, 2021. "Should multinational firms implement blockchain to provide quality verification?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    17. Yuelin Shen & Sean P. Willems & Yue Dai, 2019. "Channel Selection and Contracting in the Presence of a Retail Platform," Production and Operations Management, Production and Operations Management Society, vol. 28(5), pages 1173-1185, May.
    18. Heydari, Jafar & Bineshpour, Pegah & Walther, Grit & Ülkü, M. Ali, 2022. "Reconciling conflict of interests in a green retailing channel with green sales effort," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    19. Subodha Kumar & Vijay Mookerjee & Abhinav Shubham, 2018. "Research in Operations Management and Information Systems Interface," Production and Operations Management, Production and Operations Management Society, vol. 27(11), pages 1893-1905, November.
    20. Brofman Epelbaum, Freddy Moises & Garcia Martinez, Marian, 2014. "The technological evolution of food traceability systems and their impact on firm sustainable performance: A RBV approach," International Journal of Production Economics, Elsevier, vol. 150(C), pages 215-224.
    21. Choi, Tsan-Ming & Wen, Xin & Sun, Xuting & Chung, Sai-Ho, 2019. "The mean-variance approach for global supply chain risk analysis with air logistics in the blockchain technology era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 178-191.
    Full references (including those not matched with items on IDEAS)

    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. Xu, Xiaoping & Yan, Luling & Choi, Tsan-Ming & Cheng, T.C.E., 2023. "When Is It Wise to Use Blockchain for Platform Operations with Remanufacturing?," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1073-1090.
    2. Cao, Yu & Yi, Chaoqun & Wan, Guangyu & Hu, Hanli & Li, Qingsong & Wang, Shouyang, 2022. "An analysis on the role of blockchain-based platforms in agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    3. Xu, Xiaoping & He, Ping & Zhou, Li & Cheng, T.C.E., 2023. "Coordination of a platform-based supply chain in the marketplace or reselling mode considering cross-channel effect and blockchain technology," European Journal of Operational Research, Elsevier, vol. 309(1), pages 170-187.
    4. Niu, Baozhuang & Ruan, Yiyuan & Xu, Haotao, 2023. "Turn a blind eye? E-tailer's blockchain participation considering upstream competition between copycats and brands," International Journal of Production Economics, Elsevier, vol. 265(C).
    5. Zhang, Tianyu & Dong, Peiwu & Chen, Xiangfeng & Gong, Yu, 2023. "The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members," Omega, Elsevier, vol. 114(C).
    6. Niu, Baozhuang & Xu, Haotao & Chen, Lei, 2022. "Creating all-win by blockchain in a remanufacturing supply chain with consumer risk-aversion and quality untrust," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    7. Li, Qingying & Ma, Manqiong & Shi, Tianqin & Zhu, Chen, 2022. "Green investment in a sustainable supply chain: The role of blockchain and fairness," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    8. Cao, Yifan & Shen, Bin, 2022. "Adopting blockchain technology to block less sustainable products’ entry in global trade," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    9. Biswas, Debajyoti & Jalali, Hamed & Ansaripoor, Amir H. & De Giovanni, Pietro, 2023. "Traceability vs. sustainability in supply chains: The implications of blockchain," European Journal of Operational Research, Elsevier, vol. 305(1), pages 128-147.
    10. Liu, Shuai & Hua, Guowei & Kang, Yuxuan & Edwin Cheng, T.C. & Xu, Yadong, 2022. "What value does blockchain bring to the imported fresh food supply chain?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    11. Changhua Liao & Qihui Lu & Ying Shui, 2022. "Governmental Anti-Pandemic and Subsidy Strategies for Blockchain-Enabled Food Supply Chains in the Post-Pandemic Era," Sustainability, MDPI, vol. 14(15), pages 1-23, August.
    12. Wang, Manman & Yang, Feng & Shan, Feifei & Guo, Yu, 2024. "Blockchain adoption for combating remanufacturing perceived risks in a reverse supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    13. Liu, Samuel Shuai & Hua, Guowei & Ma, Benedict Jun & Cheng, T.C.E., 2023. "Competition between green and non-green products in the blockchain era," International Journal of Production Economics, Elsevier, vol. 264(C).
    14. Xu, Xiaoping & Choi, Tsan-Ming, 2021. "Supply chain operations with online platforms under the cap-and-trade regulation: Impacts of using blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    15. Zhao, Qingli & Fan, Zhi-Ping & Sun, Minghe, 2024. "Sales mode selection and blockchain technology adoption decisions in a platform supply chain," International Journal of Production Economics, Elsevier, vol. 272(C).
    16. Zhang, Qian & Li, Yongjian & Hou, Pengwen & Wang, Jun, 2024. "Price signal or blockchain technology? Quality information disclosure in dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 316(1), pages 126-137.
    17. Tiwari, Sunil & Sharma, Pankaj & Choi, Tsan-Ming & Lim, Andrew, 2023. "Blockchain and third-party logistics for global supply chain operations: Stakeholders’ perspectives and decision roadmap," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    18. Li, Zhiwen & Xu, Xianhao & Bai, Qingguo & Guan, Xu & Zeng, Kuan, 2021. "The interplay between blockchain adoption and channel selection in combating counterfeits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    19. Yang, Lei & Gao, Muyi & Feng, Lipan, 2022. "Competition versus cooperation? Which is better in a remanufacturing supply chain considering blockchain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    20. Tianjian Yang & Chunmei Li & Xiongping Yue & Beibei Zhang, 2022. "Decisions for Blockchain Adoption and Information Sharing in a Low Carbon Supply Chain," Mathematics, MDPI, vol. 10(13), pages 1-23, June.

    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:eee:proeco:v:276:y:2024:i:c:s0925527324002299. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    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.