Network effects in blockchain and supply chain: a theoretical research synthesis

Abstract

PurposeThis paper addresses a gap in research literature in the fields of blockchain technology (BC), supply chain network dynamics (SC) and network effect phenomena (NE). Extant BC and SC literature describes the potential benefits to be reaped through the adoption of BC technology. While BC technology does not yet meet the researched expectations of adoption, performance and efficacy, the authors analyze the three inter-related fields (BC, SC and NE) to bridge this gap in theory.Design/methodology/approachThis paper begins with a research review correlating the technological fundamentals of BC technology into fundamental value propositions for SC logistics contexts. The authors review the gap between these theoretical technological functions and the current ecosystem of BC applications. With an overarching understanding of BC in SC contexts, this paper then explores the phenomena of NE and attempts to synthesize various interrelated aspects of the three fields (BC, SC and NE). Research frameworks from extant literature are used for cross-comparing legacy software/information system solutions with potential and existing BC-based solutions. Case studies are utilized to support this analysis.FindingsSeveral key considerations and themes are identified to better inform practitioner and researcher decision-making. Novel insights pertain to BC platform architecture and application modularity, integrated governance and decision-making capabilities, and the automation capabilities that arise from a healthy application and smart contract ecosystem.Originality/valueThe core contribution is the synthesis of network effect theory with SC phenomena and BC theory and the exploration of how these three fields are inter-related in the maturation of BC technology. Specifically, the authors deepen insights from extant literature by contextualizing findings with relevant interdisciplinary theoretical frameworks.

Blockchain-enabled supply chain management: integrated impact on firm performance and robustness capabilities

“…For instance, O&G companies may need to design incentive structures that encourage suppliers and other stakeholders to provide accurate and timely data and may need to implement monitoring mechanisms to ensure that data is accurate and not subject to tampering or fraud. Network theory (NT) is also important in the context of the O&G SC, as it highlights the role of networks in driving innovation and enhancing trust and cooperation among stakeholders (Lynberg and Ahmed, 2023). For example, O&G companies may need to work with suppliers, transporters and other stakeholders to develop blockchain solutions that enhance SC transparency and reduce costs.…”

Modeling the enablers of blockchain technology implementation for information management in healthcare supply chains

“…2.2.3 Smart contracts. An asset or information is digitally transferred into a blockchain application in a smart contract (Lynberg and Deif, 2023). A smart contract, a stored set of rules that apply to network actors and the system, can help define network interaction.…”

Revolutionizing Retail: Examining the Influence of Blockchain-Enabled IoT Capabilities on Sustainable Firm Performance

“…Retail sector SC stresses the importance of networking because this aids in the innovation process, building trust, which results in efficient collaboration among SC members. The theory that is most relevant to this is network theory (NT) [28]. Retailers, for example, may need to collaborate with suppliers, logistics support, distributors, and other stakeholders to create a BC system that ensures complete SC transparency while lowering costs.…”