Improving social sustainability and reducing supply chain risks through blockchain implementation: role of outcome and behavioural mechanisms

The implementation of blockchain technology holds promise for improving social sustainability and minimising risks across the supply chain. A theory-driven analysis of how blockchain implementation affects social sustainability and minimises risks (outcomes) is missing in supply chain management literature. In particular, the role of technology service providers in meeting these outcomes is unknown. This research addresses these gaps by identifying the outcome-based and behavioural mechanisms needed to generate social sustainability and reduce risks through blockchain projects using agency theory as a theoretical lens. We conduct in-depth interviews with key stakeholders for four blockchain implementation projects to answer these questions. We identify that developing user-friendly applications, developing secure digital payment systems, providing support for suppliers and farmers and adapting to local conditions as the key outcome-based mechanisms. Educating and engaging with customers and building local relationships are found to be the key behavioural mechanisms needed to improve social sustainability and minimise risks using blockchain. Finally, we compare the cases and develop propositions.

Automated summary

This research explores the impact of implementing blockchain technology on improving social sustainability and reducing risks, using agency theory as the theoretical lens. It identifies the key outcome-based mechanisms, such as developing user-friendly applications and secure digital payment systems, and behavioral mechanisms, such as educating and engaging customers and building local relationships, that contribute to achieving these goals through blockchain projects.