TY - JOUR
T1 - Implementation of blockchain-enabled supply chain finance solutions in the agricultural commodity supply chain
T2 - a transaction cost economics perspective
AU - Bhatia, Manjot Singh
AU - Chaudhuri, Atanu
AU - Kayikci, Yasanur
AU - Treiblmaier, Horst
N1 - Publisher Copyright:
© 2023 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2023/2/21
Y1 - 2023/2/21
N2 - Agricultural commodity supply chains are characterised by the involvement of multiple intermediaries, lack of access to finance and poor financial conditions of farmers. Additionally, there exist numerous inefficiencies and a lack of transparency in the trading processes. Blockchain-enabled supply chain finance (SCF) solutions can potentially help to overcome these problems. However, there is limited research on the process of developing and implementing such solutions and the potential consequences of their implementation. In this paper, we apply the Context-Intervention-Mechanism-Outcome (CIMO) framework to systematically analyse case studies of four firms that have developed blockchain-enabled SCF solutions in agricultural commodity supply chains. The findings show that blockchain-enabled SCF solutions can reduce different types of transaction costs such as costs associated with information search, negotiation and contracting costs, and costs of accessing finance. The solutions designed with the core objective of improving the financial conditions of farmers will differ from those with the core objective of reducing process inefficiencies. The findings of the study will benefit companies planning to develop and implement blockchain-enabled SCF solutions, by highlighting operational challenges and offering concrete solutions on how they can be overcome.
AB - Agricultural commodity supply chains are characterised by the involvement of multiple intermediaries, lack of access to finance and poor financial conditions of farmers. Additionally, there exist numerous inefficiencies and a lack of transparency in the trading processes. Blockchain-enabled supply chain finance (SCF) solutions can potentially help to overcome these problems. However, there is limited research on the process of developing and implementing such solutions and the potential consequences of their implementation. In this paper, we apply the Context-Intervention-Mechanism-Outcome (CIMO) framework to systematically analyse case studies of four firms that have developed blockchain-enabled SCF solutions in agricultural commodity supply chains. The findings show that blockchain-enabled SCF solutions can reduce different types of transaction costs such as costs associated with information search, negotiation and contracting costs, and costs of accessing finance. The solutions designed with the core objective of improving the financial conditions of farmers will differ from those with the core objective of reducing process inefficiencies. The findings of the study will benefit companies planning to develop and implement blockchain-enabled SCF solutions, by highlighting operational challenges and offering concrete solutions on how they can be overcome.
KW - agricultural commodity supply chain
KW - Blockchain
KW - CIMO analysis
KW - supply chain finance
KW - Transaction Cost Economics
UR - http://www.scopus.com/inward/record.url?scp=85148660581&partnerID=8YFLogxK
U2 - 10.1080/09537287.2023.2180685
DO - 10.1080/09537287.2023.2180685
M3 - Journal article
AN - SCOPUS:85148660581
SN - 0953-7287
JO - Production Planning and Control
JF - Production Planning and Control
ER -