Implementation Framework for Blockchain-Based Traceability to Tackle Drug-Counterfeiting: Embracing Sustainable Pharma Logistics Networks

Abstract

AbstractFighting counterfeit drugs in pharma logistics networks, is one of the most important challenges in the industry. In order to contribute to the UN Sustainable Development Goal of “global health and well-being” the integration of counterfeit substances and drugs has to be stopped but is still causing significant human and economic damage. Although the problem is known for decades no approach is known that eradicates the problem. Blockchain technology is promoted as a potential solution to counterfeit drugs since it combines the properties of tamper-proof data storage and secure information transfer but its’ application in the pharma industry is still lacking behind the theoretical potential. This study seeks to assess the applicability of blockchain technology to tackle drug counterfeiting in pharma networks and to develop an implementation framework that outlines industry-specific implementation barriers and mitigation measures as well as their interdependencies. Building on nine interviews with industry experts, Grounded Theory was applied. Accordingly, the interview results were condensed into a theory by applying a three-stage coding process. Building on this analysis, an implementation framework for blockchain technology to tackle drug counterfeiting in the pharma industry is developed. The framework explains the enablers, barriers, and implementation strategies as well as the relation between them. It is shown that blockchain implementation is not hindered by a lack of technological maturity, but mostly by opposing incentive mechanisms of stakeholders involved.