Blockchain and supply chain relations: A transaction cost theory perspective

By C. Schmidt, Stephan M. Wagner. Journal of Purchasing and Supply Management, 2019

570 citations recorded by the source corpus.

Blockchain is projected to be the latest revolutionary technology and is gaining increasing attention from academics and practitioners. Blockchain is essentially a distributed and immutable database that enables more efficient and transparent transactions. The consensus-based record validation can eliminate the need for a trusted intermediary. We utilize the transaction cost theory to create a better understanding of how blockchain might influence supply chain relations, specifically in terms of transaction costs and governance decisions. Conceptually developing a set of six propositions, we argue that blockchain limits opportunistic behavior, the impact of environmental and behavioral uncertainty. Blockchain reduces transaction costs, as it allows for transparent and valid transactions. We explore several areas for future research on how blockchain might shape supply chain management in the future.

Subfields: Information Systems, Management Information Systems, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a26a584a79f96dabb9f649ddc20a6ef2f4605076

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Citations in the corpus

COVID-19 pandemic digitization lessons for sustainable development of micro-and small- enterprises (2021, background): “For example, Schmidt and Wagner (2019) explored digital technol-ogy’s ability to reduce transaction costs.”
When Blockchain Meets Supply Chain: A Systematic Literature Review on Current Development and Potential Applications (2020, background): “Blockchain-based financial applications grant a dramatic reduction on transaction costs with re-engineered processes since a synchronized ledger may significantly enhance the level of overall efficiency [119].”
Blockchain technology in supply chain operations: Applications, challenges and research opportunities (2020, unknown): “89 Schmidt and Wagner (2019) The paper presents a transaction cost theory perspective of how blockchain might influence SC relations and limits opportunistic behavior, impact of environmental uncertainty.”
Blockchain adoption in operations and supply chain management: empirical evidence from an emerging economy (2020, background): “Moreover, managers need to deploy efforts to ensure consensus for blockchain adoption and use, while effectively guaranteeing trust in transactions (Schmidt and Wagner 2019).”
A literature review of blockchain technology applications in supply chains: A comprehensive analysis of themes, methodologies and industries (2021, unknown): “For example, Schmidt and Wagner (2019) A total of 22.6% of the articles used modelling methods to solve research problems.”