4.7 Article

Designing a blockchain enabled supply chain

Journal

INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Volume 59, Issue 5, Pages 1450-1475

Publisher

TAYLOR & FRANCIS LTD
DOI: 10.1080/00207543.2020.1824086

Keywords

Blockchain; design science; supply chain; business model; design principles; longitudinal study

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This research conducted a two-year design science study on a smart contract initiative in the UK's construction sector, aiming to explore the design of a blockchain-enabled supply chain. Guided by the theory of business model, the study revealed valuable insights on how a group of supply chain actors collectively designs and pilots a blockchain solution to address transparency and provenance issues in the supply chain.
While blockchain technologies are gaining momentum within supply chains, academic understanding of concrete, real-life design and implementation is still lagging, hence offering very limited insights into the true implications of blockchain technology on supply chains. This paper reports a two-year design science research (DSR) study of a smart contract initiative piloted by a consortium in the UK's construction sector. We seek answers to the research question, 'How should a blockchain enabled supply chain be designed?' Guided by the theory of business model, we explore how a group of supply chain actors collectively designs and pilots a blockchain solution that addresses the supply chain transparency and provenance problem. Our research is one of the very few longitudinal empirical studies to offer in-depth evidence about how blockchain is deployed in complex multi-tier supply chain networks. In compliance with DSR research paradigm, we make contributions at three levels: designing and instantiating the blockchain architect and proving its utility in addressing the target problem; developing a set of design principles as a mid-range theory that can be applied and tested in different blockchain supply chain contexts; and refining and extending the kernel theory of business value at supply chain network level.

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