Block by block-How Immutable Ledgers Drive Sustainability Efforts

Abstract

Distributed ledger technology (DLT) like blockchain technology (BCT) is expected to have the power to improve sustainability in supply chains. To summarize and organize the insights of research in information systems (IS) on how BCT relates to transparency and, ultimately, sustainability of supply chains, this paper conducts a structured literature review. In total 46 articles have been identified and analyzed. The analysis shows that the potential of BCT to facilitate transparency in supply chains and thus enable sustainability measures stems from its decentralized and distributed nature. Further, BCT does not unfold this potential on its own; rather it is a technology that complements existing IS used to manage inter-organizational transactions. Overall, the paper contributes to the literature by providing a deeper insight into the possibilities, features, and merits of BCT in the SCM context, mainly focusing on transparency and sustainability matters. Summarizing and organizing the advantages of BCT and the shortcomings of existing IS used in SCM as discussed in prior research, this paper emphasizes that BCT needs to be considered as a complementary technology. Viewing BCT as such and implementing at such, BCT has great potential to support sustainability efforts significantly.