Exploring Factors and Impact of Blockchain Technology in the Food Supply Chains: An Exploratory Study.

Abstract

Blockchain technology (BCT) has been proven to have the potential to transform food supply chains (FSCs) based on its potential benefits. BCT promises to improve food supply chain processes. Despite its several benefits, little is known about the factors that drive blockchain adoption within the food supply chain and the impact of blockchain technology on the food supply chain, as empirical evidence is scarce. This study, therefore, explores factors, impacts and challenges of blockchain adoption in the FSC. The study adopts an exploratory qualitative interview approach. The data consist of Twenty-one interviews which were analyzed using thematic analysis techniques in NVivo (v12), resulting in identifying nine factors classified under three broad categories (Technology-complexity, compatibility, cost; Organization-organization size, knowledge; Environment-government support, competitive pressure, standardization, and compliance) as the most significant factors driving blockchain adoption in the FSC. In addition, five impacts were identified (visibility, performance, efficiency, trust, and value creation) to blockchain technology adoption. This study also identifies significant challenges of blockchain technology (interoperability, privacy, infrastructure conditions, and lack of knowledge). Based on the findings, the study developed a conceptual framework for blockchain adoption in food supply chains. The study adds to the corpus of knowledge by illuminating the adoption of blockchain technology and its effects on food supply chains and by giving the industry evidence-based guidance for developing its blockchain plans. The study provides full insights and awareness of blockchain adoption challenges among executives, supply chain organizations, and governmental agencies.