Devising a Mechanism for Analyzing the Barriers of Blockchain Adoption in the Textile Supply Chain: A Sustainable Business Perspective

Abstract

The adoption of blockchain technology (BCT) in a supply chain holds great potential for textile industries by executing transactions among stakeholders in a most reliable and verifiable way. Textile industries in emerging economies, like Pakistan, confront severe economic pressures and uncertain environment and strive to achieve sustainable supply chain excellence through blockchain implementation. This study is an initiative to analyze the key barriers in adopting BCT-related practices within the textile industry. This study conducts an extensive review of the literature using fuzzy Delphi approach for finalizing the barriers and applied fuzzy analytical hierarchy process (AHP) for prioritizing the barriers under uncertain environment. Based on the extensive review of the literature and panel discussions with experts, a total of five main barriers and 21 sub-barriers were categorized and ranked. The results and findings prioritize technological and system-related barriers (TSB) first, and human resources and R&D (HRB) barriers second among the other barrier dimensions. This paper highlights the need for an inclusive understanding of the various technological, environmental, and socio-economic perspectives to create blockchain applications that work for the textile sector. This study’s key findings and policy guidelines can assist concerned stakeholders in making strategic decisions for adopting BCT within the textile supply chain. The managerial implications are provided for the industrial decision-makers and policymakers aiming to integrate BCT into the supply chain processes. Presently, there exists no research in the context of Pakistan that highlights the challenges faced during the adoption of BCT in the supply chain. For this purpose, an approach in the form of an integrated model based on fuzzy set theory is developed. Finally, the robustness of the proposed model is checked through sensitivity analysis.