The potential of blockchain technology in the procurement of sustainable timber products

Abstract

Blockchain technology, best known as the decentralised transactional ledger of Internet currencies such as Bitcoin, could provide possibilities for tracking the origin of timber products. As such, it could ease the complex job of timber procurement officers in companies that seek to purchase timber products from trustworthy origins. This study explores how trust among purchasers in suppliers of sustainable timber can be increased and the roles that blockchain technology could play as a factor influencing purchasing decisions. The study examines the attributes influencing purchaser trust in timber products, revealing that the country of origin is the strongest predictor of purchaser trust, followed by the price level for the timber product, the presence of a certification scheme, and the duration of the relationship with the supplier. Blockchain technology also had a significant effect on purchaser trust and could become an important factor for generating trust in timber products during international trade.