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Potential impacts of blockchain technology on business practices of bricks and mortar (B&M) grocery stores

Mohammed T. Nuseir (College of Business, Al Ain University, Al Ain, United Arab Emirates)

Business Process Management Journal

ISSN: 1463-7154

Article publication date: 18 December 2020

Issue publication date: 3 August 2021

1908

Abstract

Purpose

This paper investigates the impact of blockchain technology on the Bricks and Mortar (B&M) grocery sector from a technological and functional perspective.

Design/methodology/approach

The research adopted an exploratory research design and the data comprises 17 semi-structured interviews with personnel at the top grocery retail chains in the United States, for example, Wal-Mart, Tesco, Stop and Shop and Meijer. Additionally, two major US-based blockchain service providers are included – SumatoSoft and Accubits.

Findings

Blockchain technology affects the business processes of B&M grocery retail by offering payment via tokens, secure payments and contracts between stakeholders, an end-to-end solution in the supply chain and secure management of the stock. However, this process is hampered by a number of challenges such as integrity and security concerns, difficulty in adapting sound logistics, lack of adequate skills and resistance to change by store managers and employees. This can be addressed by imparting education/training and creating awareness about the benefits of blockchain and generating industry-wide collaboration in which regulations can work.

Practical implications

The research has benefits for B&M grocery stores, governments and the wider society. For example, the findings of this study will help B&M grocery retailers to confront the competition by online retailers such as Amazon, AliExpress or eBay and promote the development of a systematic collaboration to achieve the changes they need.

Originality/value

The study is original and innovative in that no research to date has focused on how blockchain can help the B&M grocery sector and address its challenges.

Keywords

Citation

Nuseir, M.T. (2021), "Potential impacts of blockchain technology on business practices of bricks and mortar (B&M) grocery stores", Business Process Management Journal, Vol. 27 No. 4, pp. 1256-1274. https://doi.org/10.1108/BPMJ-06-2020-0267

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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