Trustworthiness in Supply Chains: Leveraging Private Blockchain Solutions

Document Type : Research Paper

Authors

1 STEKOM University

2 University of Science and Computer Technology (STEKOM University) Semarang, Indonesia

Abstract

This research aims to explore how private blockchain technology can enhance trust among supply chain partners. Trust plays a crucial role in building long-term relationships with customers, business partners, and other stakeholders. In this context, the sustainability and growth of a company heavily depend on its ability to maintain high levels of trust in technology, operational records, and platform reliability. The novelty of this research lies in the qualitative case study approach used to explore how collaboration and innovative solutions can improve overall performance and competitive advantage in the rapidly changing world of supply chain management. The research method employed a qualitative research approach with a case study approach. Data collection techniques involved interviews and direct observations to understand the implementation and impact of private blockchain technology in the supply chains of leading companies such as Amazon, Maersk, Microsoft, Walmart, and Alibaba. Our research shows that using blockchain in supply chains enhances transparency and builds trust among partners. It does this by offering unchangeable records that remove the necessity for third-party intermediaries, enabling business partners to engage confidently, knowing that the data exchanged is secure and accurate. Leading companies like Maersk have successfully integrated blockchain-based digital solutions such as TradeLens to improve customer trust and operational efficiency.

Keywords


Abouali, M., Sharma, K., Ajayi, O., & Saadawi, T. (2021). Blockchain Framework for Secured On-Demand Patient Health Records Sharing. 2021 IEEE 12th Annual Ubiquitous Computing, Electronics and Mobile Communication Conference, UEMCON 2021, 35–40. https://doi.org/10.1109/UEMCON53757.2021.9666482
Adeoye-Olatunde, O. A., & Olenik, N. L. (2021). Research and scholarly methods: Semi-structured interviews. Journal of the American College of Clinical Pharmacy, 4(10), 1358–1367. https://doi.org/10.1002/JAC5.1441
Alshurideh, M. T., Al Kurdi, B., Alzoubi, H. M., Obeidat, B., Hamadneh, S., & Ahmad, A. (2022). The influence of supply chain partners’ integrations on organizational performance: The moderating role of trust. Uncertain Supply Chain Management, 10(4), 1191–1202. https://doi.org/10.5267/j.uscm.2022.8.009
Aviv, I. (2022). The Distributed Ledger Technology as Development Platform for Distributed Information Systems. 344–355. https://doi.org/10.1007/978-3-030-97196-0_28
Bharathi Murthy, C. H. V. N. U., Shri, M. L., Kadry, S., & Lim, S. (2020). Blockchain-based cloud computing: Architecture and research challenges. IEEE Access, 8, 205190–205205. https://doi.org/10.1109/ACCESS.2020.3036812
Bhushan, B., & Sharma, N. (2021). Transaction privacy preservations for blockchain technology. Advances in Intelligent Systems and Computing, 1166, 377–393. https://doi.org/10.1007/978-981-15-5148-2_34
Bouras, A., Gasmi, H., Belhi, A., Hammi, A., & Aouni, B. (2021). Enterprise Information Systems enhancement: A HyperLedger Fabric-based application. 9th International Symposium on Digital Forensics and Security, ISDFS 2021. https://doi.org/10.1109/ISDFS52919.2021.9486371
Centobelli, P., Cerchione, R., Vecchio, P. Del, Oropallo, E., & Secundo, G. (2022). Blockchain technology for bridging trust, traceability and transparency in circular supply chain. Information & Management, 59(7), 103508. https://doi.org/10.1016/J.IM.2021.103508
Charles, D., & Fortin, P. (2023). A Blockchain Cross-Border Payment System to Enable a Potential Caribbean Regional Emissions Trading Scheme. Green and Low-Carbon Economy. https://doi.org/10.47852/BONVIEWGLCE3202825
Chowdhury, S., Rodriguez-Espindola, O., Dey, P., & Budhwar, P. (2023). Blockchain technology adoption for managing risks in operations and supply chain management: evidence from the UK. Annals of Operations Research, 327(1), 539–574. https://doi.org/10.1007/S10479-021-04487-1/TABLES/11
Giraldi, L., Coacci, S., & Cedrola, E. (2023). How relational capability can influence the success of business partnerships. International Journal of Productivity and Performance Management, 73(2), 601–628. https://doi.org/10.1108/IJPPM-01-2022-0012/FULL/XML
Guest, G., Namey, E., & Chen, M. (2020). A simple method to assess and report thematic saturation in qualitative research. PLOS ONE, 15(5), e0232076. https://doi.org/10.1371/JOURNAL.PONE.0232076
Huo, B., Haq, M. Z. U., & Gu, M. (2021). The impact of information sharing on supply chain learning and flexibility performance. International Journal of Production Research, 59(5), 1411–1434. https://doi.org/10.1080/00207543.2020.1824082
Ibba, G., Aufiero, S., Bartolucci, S., Neykova, R., Ortu, M., Tonelli, R., & Destefanis, G. (2023). MindTheDApp: A Toolchain for Complex Network-Driven Structural Analysis of Ethereum-based Decentralised Applications. https://arxiv.org/abs/2310.02408v1
Jabbar, S., Lloyd, H., Hammoudeh, M., Adebisi, B., & Raza, U. (2021). Blockchain-enabled supply chain: analysis, challenges, and future directions. Multimedia Systems, 27(4), 787–806. https://doi.org/10.1007/S00530-020-00687-0/FIGURES/9
Jayabalan, J., & Jeyanthi, N. (2021). A Study on Distributed Consensus Protocols and Algorithms: The Backbone of Blockchain Networks. 2021 International Conference on Computer Communication and Informatics, ICCCI 2021. https://doi.org/10.1109/ICCCI50826.2021.9402318
Kolade, O., Adepoju, D., & Adegbile, A. (2022). Blockchains and the disruption of the sharing economy value chains. Strategic Change, 31(1), 137–145. https://doi.org/10.1002/JSC.2483
Kumar, D., Singh, R. K., Mishra, R., & Daim, T. U. (2023). Roadmap for integrating blockchain with Internet of Things (IoT) for sustainable and secured operations in logistics and supply chains: Decision making framework with case illustration. Technological Forecasting and Social Change, 196, 122837. https://doi.org/10.1016/J.TECHFORE.2023.122837
Laroiya, C., Saxena, D., & Komalavalli, C. (2020). Applications of Blockchain Technology. Handbook of Research on Blockchain Technology, 213–243. https://doi.org/10.1016/B978-0-12-819816-2.00009-5
Lee, C., & Kim, S. (2023). Impact of Information Sharing on Trust and Commitment Level in the Supply Chain: Focus on Korea’s Three New Core Industries. Operations and Supply Chain Management: An International Journal, 16(1), 17–24. https://doi.org/10.31387/OSCM0520369
Levitt, H. M. (2021). Qualitative Generalization, Not to the Population But to the Phenomenon: Reconceptualizing Variation in Qualitative Research. Qualitative Psychology, 8(1), 95–110. https://doi.org/10.1037/QUP0000184
Li, F. (2022). Sustainable Competitive Advantages via Temporary Advantages: Insights from the Competition between American and Chinese Digital Platforms in China. British Journal of Management, 33(4), 2009–2032. https://doi.org/10.1111/1467-8551.12558
Mallet, M. A., Owusu Kwateng, K., & Nuertey, D. (2022). Can trust moderate the relationship between supplier–buyer relationship and supply chain sustainability? International Journal of Pharmaceutical and Healthcare Marketing, 16(2), 222–242. https://doi.org/10.1108/IJPHM-10-2020-0086
Mollajafari, S., & Bechkoum, K. (2023). Blockchain Technology and Related Security Risks: Towards a Seven-Layer Perspective and Taxonomy. Sustainability 2023, Vol. 15, Page 13401, 15(18), 13401. https://doi.org/10.3390/SU151813401
Mwesigwa, R., Bagire, V., Ntayi, J., & Munene, J. (2020). Contract completeness as a foundation to relationship building among stakeholders in public private partnership projects. International Journal of Public Administration, 43(10), 890–899. https://doi.org/10.1080/01900692.2019.1660993
Nooteboom, B. (2022). Trust. In Handbook on Theories of Governance. Edward Elgar Publishing. https://doi.org/10.4337/9781800371972.00027
Philsoophian, M., Akhavan, P., & Namvar, M. (2022). The mediating role of blockchain technology in improvement of knowledge sharing for supply chain management. Management Decision, 60(3), 784–805. https://doi.org/10.1108/MD-08-2020-1122
Pološki Vokić, N., Rimac Bilušić, M., & Najjar, D. (2021). Building organizational trust through internal communication. Corporate Communications, 26(1), 70–83. https://doi.org/10.1108/CCIJ-01-2020-0023
Qian, X. (Alice), & Papadonikolaki, E. (2021). Shifting trust in construction supply chains through blockchain technology. Engineering, Construction and Architectural Management, 28(2), 584–602. https://doi.org/10.1108/ECAM-12-2019-0676
Rejeb, A., Keogh, J. G., Simske, S. J., Stafford, T., & Treiblmaier, H. (2021). Potentials of blockchain technologies for supply chain collaboration: a conceptual framework. International Journal of Logistics Management, 32(3), 973–994. https://doi.org/10.1108/IJLM-02-2020-0098
Sedej, T., & Dk, W. C. (2021). Blockchain Technology and Inter-Organizational Relationships. PhD Series, 24. https://research.cbs.dk/en/publications/blockchain-technology-and-inter-organizational-relationships
Sharma, M., Luthra, S., Joshi, S., & Kumar, A. (2021). Accelerating retail supply chain performance against pandemic disruption: adopting resilient strategies to mitigate the long-term effects. Journal of Enterprise Information Management, 34(6), 1844–1873. https://doi.org/10.1108/JEIM-07-2020-0286
Solaimani, S., & van der Veen, J. (2022). Open supply chain innovation: an extended view on supply chain collaboration. Supply Chain Management, 27(5), 597–610. https://doi.org/10.1108/SCM-09-2020-0433
Tarigan, Z. J. H., Siagian, H., & Jie, F. (2021). Impact of Internal Integration, Supply Chain Partnership, Supply Chain Agility, and Supply Chain Resilience on Sustainable Advantage. Sustainability 2021, Vol. 13, Page 5460, 13(10), 5460. https://doi.org/10.3390/SU13105460
Ting, H. L. J., Kang, X., Li, T., Wang, H., & Chu, C. K. (2021). On the Trust and Trust Modeling for the Future Fully-Connected Digital World: A Comprehensive Study. IEEE Access, 9, 106743–106783. https://doi.org/10.1109/ACCESS.2021.3100767
Toufaily, E., Zalan, T., & Dhaou, S. Ben. (2021). A framework of blockchain technology adoption: An investigation of challenges and expected value. Information & Management, 58(3), 103444. https://doi.org/10.1016/J.IM.2021.103444
Vadher, D., & Parekh, C. (2020). Blockchain In System And Network Security. International Research Journal of Engineering and Technology. www.irjet.net
Waerness, K., Solstad, E., & Bertheussen, B. A. (2023). Trust-based management control in inter-organizational relationships. Journal of Management Control. https://doi.org/10.1007/s00187-023-00357-y
Wan, P. K., Huang, L., & Holtskog, H. (2020). Blockchain-Enabled Information Sharing within a Supply Chain: A Systematic Literature Review. IEEE Access, 8, 49645–49656. https://doi.org/10.1109/ACCESS.2020.2980142
Wu, W., Zhang, P., & Tsai, S. B. (2023). IT investment and corporate collaborative innovation: the moderating role of the top management team’s educational background and absorptive capacity. Internet Research, ahead-of-print(ahead-of-print). https://doi.org/10.1108/INTR-12-2021-0899
Yang, Z., Salman, T., Jain, R., & Pietro, R. Di. (2022). Decentralization Using Quantum Blockchain: A Theoretical Analysis. IEEE Transactions on Quantum Engineering, 3. https://doi.org/10.1109/TQE.2022.3207111
Yazdanshenas, M., & Mirzaei, M. (2023). Leadership integrity and employees’ success: role of ethical leadership, psychological capital, and psychological empowerment. International Journal of Ethics and Systems, 39(4), 761–780. https://doi.org/10.1108/IJOES-05-2022-0117