Blockchain empowerment: enhancing consumer trust and outreach through supply chain transparency

Abstract

Despite the growing interest in blockchain for supply chain transparency, a gap remains in understanding consumer perceptions and attitudes toward blockchain-supported initiatives. This study examines how consumers perceive blockchain's role in enhancing supply chain transparency, the factors influencing consumer trust in blockchain-enabled transparency, and the implications for consumer engagement and behaviour within the supply chain network. Through a scenario-based experiment, we find that technology-supported transparency enhances consumer trust not only in the focal firm but also in various stakeholders involved. Specifically, consumers exhibit higher trust in retailers and other stakeholders when firms adopt decentralised transparency systems compared to centralised ones. Decentralised technology-supported transparency significantly influences consumers’ decisions to interact directly with stakeholders, shifting their preference toward responsible supply chain actors over focal firms. While multi-stakeholder transparency does not directly affect consumers’ purchase intentions, high trust in the technology positively influences their intention to purchase. Our study provides actionable managerial insights, guiding decision-makers in adopting decentralised transparency practices to strengthen stakeholder relationships and align with consumer expectations. By understanding the nuances of consumer trust in technology-supported transparency, firms can make more informed strategic decisions, ultimately enhancing the overall performance of their supply chains.