Blockchain applications and supply chain performance: evidence from Chinese firms

Abstract

ABSTRACT As blockchain technology becomes increasingly prevalent in firms, it is worth exploring its impact on firms’ supply chain performance (SCP). Based on 13,230 research samples from 1,761 A-share listed firms collected from CNRDS between 2012 and 2019, this paper conducts an empirical study on how blockchain technology would affect the performance of supply chains. We divide our sample into two groups based on whether firms apply blockchain and conduct an empirical study using the difference-in-difference (DID) model. This study contributes to the literature by utilising quantitative methods and integrating blockchain with SCP. The results indicate that the application of blockchain technology can increase the performance of the supply chain represented by the cash-to-cash cycle. A series of robustness tests and the placebo test also support this conclusion. The improving effect of blockchain on the performance of firm supply chains is only significant in non-state-owned enterprises (NSOEs), smaller firms, and non-manufacturing firms. Our study contributes to the continual development of theories about SCP, guiding firms to implement measures that unlock the full potential of blockchain to improve their SCP.