IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i12p2868-d1412845.html
   My bibliography  Save this article

Competing Manufacturers Adopt Blockchain for Tracing Power Batteries: Is There a Win-Win Zone?

Author

Listed:
  • Danyun Shen

    (School of Applied Technology, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Qiyao Liu

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Dan Cudjoe

    (School of Business, Nanjing University of Information Science & Technology, Nanjing 210044, China)

Abstract

Blockchain-based battery tracking offers solutions to issues like information asymmetry, counterfeit battery risk, and technical barriers in assessing battery condition. This paper aims to identify the drivers behind manufacturers adopting blockchain for battery tracking and assess whether a mutually beneficial outcome exists. We develop a game model featuring two competing manufacturers, and extend it to include asymmetric competition and battery quality considerations. Equilibrium solutions reveal two main incentives for manufacturers to adopt blockchain: reverse profit compensation and enhancement of battery quality. Blockchain traceability facilitates retired battery recovery in a large-scale market, even when adoption costs outweigh reuse savings and collection prices are low. If one manufacturer implements blockchain, reducing blockchain costs or expanding the market can lead to a “win-win” outcome for competitors. Our findings offer novel managerial insights into manufacturers’ blockchain adoption decisions.

Suggested Citation

  • Danyun Shen & Qiyao Liu & Dan Cudjoe, 2024. "Competing Manufacturers Adopt Blockchain for Tracing Power Batteries: Is There a Win-Win Zone?," Energies, MDPI, vol. 17(12), pages 1-15, June.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:12:p:2868-:d:1412845
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/12/2868/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/12/2868/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Atalay Atasu & Miklos Sarvary & Luk N. Van Wassenhove, 2008. "Remanufacturing as a Marketing Strategy," Management Science, INFORMS, vol. 54(10), pages 1731-1746, October.
    2. Genc, Talat S. & Giovanni, Pietro De, 2017. "Trade-in and save: A two-period closed-loop supply chain game with price and technology dependent returns," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 514-527.
    3. 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).
    4. Gavin Harper & Roberto Sommerville & Emma Kendrick & Laura Driscoll & Peter Slater & Rustam Stolkin & Allan Walton & Paul Christensen & Oliver Heidrich & Simon Lambert & Andrew Abbott & Karl Ryder & L, 2019. "Recycling lithium-ion batteries from electric vehicles," Nature, Nature, vol. 575(7781), pages 75-86, November.
    5. 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.
    6. Jiri Chod & Nikolaos Trichakis & Gerry Tsoukalas & Henry Aspegren & Mark Weber, 2020. "On the Financing Benefits of Supply Chain Transparency and Blockchain Adoption," Management Science, INFORMS, vol. 66(10), pages 4378-4396, October.
    7. 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).
    8. Xiongyong Zhou & Madeleine Pullman & Zhiduan Xu, 2022. "The impact of food supply chain traceability on sustainability performance," Operations Management Research, Springer, vol. 15(1), pages 93-115, June.
    9. 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.
    10. Cao, Kaiying & Guo, Qiang & Xu, Yuqiu, 2023. "Information sharing and carbon reduction strategies with extreme weather in the platform economy," International Journal of Production Economics, Elsevier, vol. 255(C).
    11. Weixin Shang & Albert Y. Ha & Shilu Tong, 2016. "Information Sharing in a Supply Chain with a Common Retailer," Management Science, INFORMS, vol. 62(1), pages 245-263, January.
    12. Albert Y. Ha & Shilu Tong, 2008. "Contracting and Information Sharing Under Supply Chain Competition," Management Science, INFORMS, vol. 54(4), pages 701-715, April.
    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. 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).
    2. 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).
    3. Zhou, Yong-wu & Fu, Yu-shen & Wu, Xiaoli, 2023. "Value analysis with blockchain-based information transparency system to eliminate information distortion," International Journal of Production Economics, Elsevier, vol. 265(C).
    4. 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).
    5. Davies, Jennifer & Sharifi, Hossein & Lyons, Andrew & Forster, Rick & Elsayed, Omar Khaled Shokry Mohamed, 2024. "Non-fungible tokens: The missing ingredient for sustainable supply chains in the metaverse age?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    6. Quanpeng Chen & Xiaogang Chen, 2023. "Blockchain-Enabled Supply Chain Internal and External Finance Model," Sustainability, MDPI, vol. 15(15), pages 1-33, July.
    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. Zhang, Chu & Liu, Bin & Cai, Gangshu George & Huang, Tao, 2023. "When ignorance is bliss: The retailer’s intelligence hazard under information sharing and exchanging," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    9. Zhu, Shichao & Li, Jian & Wang, Shouyang & Xia, Yusen & Wang, Yajing, 2023. "The role of blockchain technology in the dual-channel supply chain dominated by a brand owner," International Journal of Production Economics, Elsevier, vol. 258(C).
    10. Kumar, Sourabh & Barua, Mukesh Kumar, 2023. "Exploring the hyperledger blockchain technology disruption and barriers of blockchain adoption in petroleum supply chain," Resources Policy, Elsevier, vol. 81(C).
    11. 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.
    12. Antonella Moretto & Laura Macchion, 2022. "Drivers, barriers and supply chain variables influencing the adoption of the blockchain to support traceability along fashion supply chains," Operations Management Research, Springer, vol. 15(3), pages 1470-1489, December.
    13. Zhu-Jun Wang & Yangyang Sun & Qin Su & Muhammet Deveci & Kannan Govindan & Mirosław J. Skibniewski & Zhen-Song Chen, 2024. "Smart Contract Application in Resisting Extreme Weather Risks for the Prefabricated Construction Supply Chain: Prototype Exploration and Assessment," Group Decision and Negotiation, Springer, vol. 33(5), pages 1049-1087, October.
    14. Zhang, Xuefeng & Li, Zhe & Li, Guo, 2023. "Impacts of blockchain-based digital transition on cold supply chains with a third-party logistics service provider," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    15. Ulpan Tokkozhina & Ana Lucia Martins & Joao C. Ferreira, 2023. "Uncovering dimensions of the impact of blockchain technology in supply chain management," Operations Management Research, Springer, vol. 16(1), pages 99-125, March.
    16. 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.
    17. 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.
    18. Maximilian Klöckner & Christoph G. Schmidt & Stephan M. Wagner, 2022. "When Blockchain Creates Shareholder Value: Empirical Evidence from International Firm Announcements," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 46-64, January.
    19. Govindan, Kannan & Kannan, Devika & Jørgensen, Thomas Ballegård & Nielsen, Tim Straarup, 2022. "Supply Chain 4.0 performance measurement: A systematic literature review, framework development, and empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    20. Yuling Sun & Xiaomei Song & Yihao Jiang & Jian Guo, 2023. "Strategy Analysis of Fresh Agricultural Enterprises in a Competitive Circumstance: The Impact of Blockchain and Consumer Traceability Preferences," Mathematics, MDPI, vol. 11(5), pages 1-18, February.

    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:gam:jeners:v:17:y:2024:i:12:p:2868-:d:1412845. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.