Adoption of Blockchain Technology Facilitates a Competitive Edge for Logistic Service Providers

Abstract

Blockchain is attracting tremendous attention in the logistics industry on account of its cutting-edge appeal, potential for integration within the sector, and capacity to disrupt established practices. Among other things, blockchain technology promises to open up new horizons in traceability, transparency, accuracy, and safety throughout the supply chain. However, as an emerging technology, blockchain is still relatively nascent, and familiarity with the technology is limited, as are its implementations. In addition, there is a dearth of studies concerning blockchain technology specifically, as it pertains to transport and logistics, as opposed to finance and cryptocurrency. It remains unknown what factors enable blockchain adoption by logistics service providers and how its adoption affects firm performance and capabilities. This research examines extant literature and conducts research on an eminent global transportation company to elucidate the potential influence of blockchain adoption on firm performance. The results of this work support the model that advancing theory-driven and empirical blockchain studies will increase firm capabilities and foster a competitive edge in the emerging digitalized era.