Blockchain Adoption in Indian Manufacturing Supply Chain using T-O-E Framework

Abstract

In the domain of supply chain, there exists an immense potential for Blockchain technology. When implemented in the right way, Blockchain can improve the efficiency and competitiveness of manufacturing supply chain networks and thereby increase customer satisfaction. In spite of its undisputed capability in improving the efficiency of supply chain networks, the degree of acceptance of Blockchain, since its inception, remains very low. This paper studies the major hindrances experienced by manufacturing firms in adopting Blockchain for supply chain. A theoretical model is developed based on Technology-Organization-Environment (TOE) framework and analysed using the SmartPLS tool for partial least squares technique. The findings of this study suggests that there is a significant impact of all three latent variables of TOE Framework i.e., technological barriers, organizational barriers and environmental barriers on Blockchain adoption by manufacturing supply chains. The parameters in these barriers are lack of block-chain standardization, lack of government regulation and lack of financial resources. The results are implied for policy makers and related agencies to take suitable actions to overcome these barriers and encourage adoption of block chain in Indian manufacturing supply chain. It will also help researchers to further study the way to reduce the impact of these barriers.