Networked Surveillance for Good? A Perception Study on Blockchain-Based Supply Chain Transparency

Abstract

The purpose of this study is to investigate the controversial Janus-face of surveillance in the form of distributed ledger technology (DLT) and blockchain-based product identifiers within the Swiss luxury watch industry. We propose the concept of “networked surveillance,” as a form of supply chain transparency, to address the currently under-researched novelty of DLT within the luxury watch context. In this exploratory study, an inductive approach to collecting and analyzing data is applied to gain insights into luxury watch experts’ perceptions of the disruptive potential of DLT, against the background of current industry trends and challenges. The findings from a survey and in-depth expert interviews indicate salient industry challenges, along with four major themes that are characteristic for ongoing industry transformations: (1) new, younger consumer generations are becoming increasingly important; (2) higher standards with respect to quality, as well as ethical and sustainable product attributes are demanded; (3) personalization beyond the physical product is moving center stage, along with (4) digitalization and innovation. Building on these findings, the offered contribution highlights networked surveillance as a concept for digital transparency that goes beyond dichotomies of the surveillance concept. Networked surveillance can thereby inform an ethical luxury industry, with benefits of learning and control in three key areas: 1) black markets and counterfeits, (2) CSR standards and supply chains, (3) and personalization beyond physical products, toward virtual luxury identities. Keywords: Networked surveillance, Janus-faced, distributed ledger technology, ethical luxury, supply chain transparency, Swiss luxury watch industry, inductive study