An ensemble design of a cash crops-warehouse receipt system (WRS) based on blockchain smart contracts

Abstract

Purpose

Warehouse receipt system (WRS) schemes aim to revitalize the market of cash crops, particularly those of the smallholder farmers. However, the existing government schemes for the smallholder farmers have not been much successful on account of issues related with transparency and trust deficit, thereby limiting farmers' access to credit for their farming activities as channeled via the formal financial institutions. Conceding that blockchain is an emerging technology, this study aims to theoretically posit the potential to optimize WRS in real time to bolster farmers' trust and privacy.

Design/methodology/approach

The research bases itself on the design science research (DSR) approach. Using the DSR approach backed by the literature review and evolutionary prototyping, a blockchain-based WRS has been advanced in the study.

Findings

This study provides a design of a digital WRS, which serves as a proof of concept of blockchain technology (BCT) applications in improving transparency in the WRS in the agricultural sector. The findings from this study present the possibility of leveraging blockchain smart contracts to improve the linkages between the WRS stakeholders to promote trust and transparency that would eventually unlock the potentials of WRS schemes. Furthermore, the findings inform decision-makers and practitioners to prioritize the emerging technologies in revamping the classical WRS.

Research limitations/implications

The study leaves research pointers for implementing BCT in agricultural supply chain and furthering the findings from the present study with an empirical agenda.

Originality/value

Whilst research on the BCT applications across myriad sectors abounds, research on the BCT applications to address societal needs is conspicuously limited. Furthermore, research on the practical implementation of the BCT in real-world scenarios is few and far between. The present study seeks to plug these gaps by underlining the application and utility of blockchain in WRS. The study makes a significant contribution to the theory and practice of the agrarian supply chain management, specifically the WRS, by invoking design knowledge obtained through an iterative design process besides serving as an edifice for the integration of emerging technologies, notably BCT in the agricultural sector.

Citation

Shao, D., Kombe, C. and Saxena, S. (2023), "An ensemble design of a cash crops-warehouse receipt system (WRS) based on blockchain smart contracts", Journal of Agribusiness in Developing and Emerging Economies, Vol. 13 No. 5, pp. 762-774. https://doi.org/10.1108/JADEE-02-2022-0032