The impact of a blockchain platform on trust in established relationships: a case study of wine supply chains

Abstract

Purpose: This paper examines the impact of a blockchain platform on the role and importance of trust in established buyer-supplier relationships. Design/methodology/approach: A literature review provides insight into trust development in supply chains. Research uses a case study of two wine supply chains: the producers, importers, logistics companies and UK Government agencies. Semi-structured interviews determine how trust and trustworthiness develop in buyer-supplier relationships and the impact of a blockchain-based technology proof of concept on supply chain trust. Findings: A blockchain-based platform introduces common trusted data, reducing data duplication and improving supply chain visibility. The platform supports trust building between parties but does not replace the requirements for organisations to establish a position of trust. Contrary to literature claims for blockchain trustless disintermediation, new intermediaries are introduced who need to be trusted. Research limitations/implications: The case study presents challenges specific to UK customs borders, and research needs to be repeated in different contexts to establish if findings are generalisable. Practical implications: A blockchain-based platform can improve supply chain efficiency and trust development but does not remove the need for trust and trust-building processes. Blockchain platform providers need to build a position of trust with all participants. Originality/value: Case study research shows how blockchain facilitates but does not remove trust, trustworthiness and trust relationships in established supply chains. The reduction in information asymmetry and improved supply chain visibility provided by blockchain does not change the importance of trust in established buyer-supplier relationships or the trust-based policy of the UK Government at the customs border.