A decision-aid model for evaluating challenges to blockchain adoption in supply chains

Abstract

ABSTRACT Blockchain, emerging technology, has immense potential to transform supply chain activities. Though blockchain offers more benefits, industries face many challenges in blockchain adoption. This paper aims to develop a framework to identify and evaluate various challenges in adopting blockchain in supply chain management. First, 40 prominent challenges to blockchain adoption were identified using the fuzzy Delphi technique. The challenges were then assessed using an integrated methodology that included the grey-decision-making trial and evaluation laboratory (DEMATEL) and the weighted aggregated sum product assessment (WASPAS) method. Case studies of five leather garment manufacturing companies were conducted to test this integrated strategy. To ensure the proposed framework's robustness and viability, a sensitivity analysis was performed. Results indicate lack of knowledge about blockchain technology, non-existence of universal regulatory binding, new organisational policies, reputation-based attack, and vulnerable to cyber-attack as the top five challenges faced by the leather garment manufacturing companies. This study imparts the knowledge, significance and challenges in adopting blockchain technology in supply chain management. The outcome of this study provides structural assistance to the managers by exposing the causeand-effect group challenges in blockchain adoption. By understanding the cause and effect relationship among the challenges, industrial practitioners may devise adequate strategies.