Building blockchain‐driven dynamic capabilities for developing circular supply chain: Rethinking the role of sensing, seizing, and reconfiguring

Abstract

Globally, firms face increasing pressure to efficiently utilize resources and minimize costs and may do so through sustainable supply chains and circular economy practices. Emerging technologies, such as blockchain, to enable a circular economy have become a new industrial paradigm. However, firms require building dynamic capabilities through blockchain, which can be key to realizing circular economy model. This study introduces a framework for building blockchain‐driven dynamic capabilities for a circular supply chain. We further use the Decision Making Trial and Evaluation Laboratory (DEMATEL) method to evaluate three major dynamic capabilities and 18 sub‐dynamic capabilities and their interrelationships. The mining industry in Ghana sets the stage for this analysis. The study results show that although blockchain‐driven sensing dynamic capability, seizing dynamic capability, and reconfiguring dynamic capability are crucial for developing a circular supply chain, they do not strictly follow a sequence and overlap. We highlight various cause–effect relationships, providing insights into the role of sensing, seizing, and reconfiguring dynamic capabilities. That information is important to firms, stakeholders, and partners to draft an appropriate strategy to build blockchain‐driven dynamic capabilities for developing a circular supply chain.

Dynamic capabilities and digitalization as antecedents of innovation and sustainable performance: empirical evidence from Vietnamese SMEs

“…DCs have emerged as a valuable lens for evaluating SMEs due to their aggregative approach and the flexibility they require across functional areas, roles and people (Martins, 2023; Clampit et al , 2022; Hernández-Linares et al , 2021). According to Quayson et al (2023), Martins (2023) and Aghimien et al (2023), the core components of DCs include sensing, seizing and reorganizing. Sensing refers to detecting changes and learning quickly to adapt to new environments (Santa‐Maria et al , 2022; Teece, 2007).…”

Evolving trajectories of circular supply chain domain: a citation path analysis

“…Further, the authors propose digitalizing business models to better implement CE. Quayson et al (2023) proposed a blockchain-driven framework to highlight cause-effect relationships to highlight the role of seizing, sensing and reconfiguring dynamic capabilities. how SCM performance could be enhanced by the relationship between Industry 4.0 and the CE.…”

Blockchain and the transition to the circular economy: A literature review

“…The provision of information enhances transparency, thereby bolstering security(Böhmecke-Schwafert et al, 2022). As highlighted byKhan, Razzaq, et al (2021),Khan, Zia-ul-haq, et al (2021), blockchain technology makes a revolutionary contribution by enabling realtime data sharing with higher accuracy.Consequently, the utilization of blockchain technology enhances visibility, transparency, traceability, and trust in CE practices(Quayson et al, 2023). These authors further underscore that end consumers or social regulators can verify the authenticity of each batch of materials on the blockchain platform, which facilitates the improvement of the physical flow within the existing recycling value chain and encourages global resource sharing through more transparent processes Panghal et al (2022).…”

“…In alignment with these findings,Khan et al (2022) suggest that blockchain technology exerts a significant impact on the CE. However, the magnitude of this impact hinges on the adaptability of blockchain to local conditions and its resource implications, which are not only valuable but also rare and characterized by high degrees of non-substitutability and non-imitability(Chaudhuri et al, 2022).In essence,Böhmecke-Schwafert et al (2022) view blockchain as a tool providing the technical infrastructure for processes that enable the organization of smart contracts capable of automating decentralized processes, cost-sharing, and payment processes Quayson et al (2023). have identified mining companies testing blockchain to foster transparent partnerships with suppliers for the collection of recyclable materials, with the aim of transforming their circular supply chains and harnessing the dynamic capabilities facilitated by blockchain to attain circular outcomes within that supply chain.Regarding management, research by Gong et al (2022), Nandi et al (2021a) and Nandi et al (2021b) underscore that blockchain platforms enable more efficient oversight of activities by society and consumers.…”