How blockchain manages supply chain risks: evidence from Indian manufacturing companies

Abstract

Purpose

This study aims to investigate the contribution of blockchain technology to supply chain risk management and its impact on performance among Indian manufacturing companies.

Design/methodology/approach

Drawing on a resource-based view, dynamic capability and system of systems theory, this study examines the direct relationships between blockchain, supply chain risk management and supply chain performance. The authors validate the mediating effects of three supply chain risk management components, namely supply risk management, demand risk management and cyber security management, on financial transaction reliability and information reliability. Data were collected from 204 Indian manufacturing companies that have adopted blockchain technology.

Findings

The results demonstrate that companies adopting blockchain technology have experienced positive outcomes in managing supply chain-related risks, financial transaction reliability and information reliability. These findings provide valuable guidance to managers, highlighting blockchain as a competitive advantage for supply chain management.

Originality/value

To the best of the authors’ knowledge, no previous research on blockchain-based risk management capabilities has been conducted.

Citation

Hong, L. and Hales, D.N. (2024), "How blockchain manages supply chain risks: evidence from Indian manufacturing companies", The International Journal of Logistics Management, Vol. 35 No. 5, pp. 1604-1627. https://doi.org/10.1108/IJLM-05-2023-0178