The Effect of Blockchain Technology in Enhancing Ethical Sourcing and Supply Chain Transparency: Evidence from The Cocoa and Agricultural Sectors in Ghana

Abstract

This study examines the impact of blockchain technology on ethical sourcing and supply chain transparency in Ghana's cocoa and agriculture industries. Using the Diffusion of Innovation Theory as a framework, the study investigates the adoption and influence of blockchain technology on ethical sourcing practices and supply chain transparency. Regression analysis was conducted using data from 153 firms in the agricultural and cocoa sectors to explore the relationships between blockchain technology usage, ethical sourcing, supply chain transparency, adoption of new technologies, and corporate social responsibility. The results highlight the significant influence of blockchain technology adoption on supply chain transparency and ethical sourcing practices in the cocoa and agricultural sectors. Specifically, companies that utilize blockchain technology tend to have more transparent supply chains and are more likely to engage in ethical sourcing compared to those that do not. Moreover, there is evidence suggesting that the use of technology, particularly blockchain, is a strong predictor of increased transparency, with positive correlations observed across all industries. These findings illustrate the potential of blockchain technology to enhance ethical sourcing methods and supply chain transparency in Ghana's cocoa and agriculture industries. It is recommended that both public and private corporations consider investing in technology adoption, particularly blockchain technology, as it has the potential to improve ethical sourcing practices.