Adoption of Blockchain for Sustainable Supply Chains: An Identification of Benefits, Challenges, and Risks

Abstract: Supply chain management (SCM) has become more challenging than ever, considering the effect of globalization on organizations as operating through transnational business networks. Conventional supply chains have been facing struggles such as lack of advanced technologies and traceability in operation, which then leads to operational inefficiencies. Blockchain (BC) technology offers a set of features that supply chains can leverage, including transparency, data reliability, security, auditability, and automation. Existing pressures from governments, communities, and consumers as drivers of reaching sustainability goals direct us to further evaluate the use of BC as a facilitator for sustainable supply chain management (SSCM). However, there are also caveats associated with the adoption of BC technology. This thesis aims to evaluate the capabilities of BC technology in the context of SSCM. The authors construct a framework consisting of mainstream BC features, the three pillars of SSCM, together with challenges and risks. The findings of this study reflect that BC is promising to benefit the sustainability aspect of SCM through increasing transparency, security and integrity of data, and automation capability by smart executions. Nonetheless, there are also issues to reckon with, such as the increasing need for awareness and technical competence, organizational collaboration, and effective change management.