Roles of Blockchain Technology in Supply Chain Capability and Flexibility

Abstract

Blockchain technology is a major innovation that has swept through global supply chains recently. Blockchain technology has received immense attention in the supply chain industry due to its promising capabilities. This study was conducted to evaluate the potential capabilities of blockchain technology, which are highly relevant to the supply chain industry. To improve the understanding of the effect of blockchain on the supply chain, this research focuses on two crucial aspects of supply chain management, namely, supply chain capabilities and flexibility. The research procures measuring items for blockchain characteristics, supply chain capabilities, and flexibility through a questionnaire, the previous literature, and interviews conducted with industry experts. Through the use of statistical analysis, this study identifies the relationship between the above variables. The effect of blockchain on each variable is examined using a simple linear regression model. The findings disclose that blockchain technology has generated a notable impact on the supply chain capabilities and supply chain flexibility of firms. This makes blockchain technology highly essential for firms to generate a competitive advantage in the market and develop a new set of capabilities ahead of their competitors.