| Literature DB >> 34898788 |
Kirti Nayal1, Rakesh D Raut1, Balkrishna E Narkhede1, Pragati Priyadarshinee2, Gajanan B Panchal3, Vidyadhar V Gedam4.
Abstract
Blockchain can solve the problems that the agriculture supply chain (ASC) is facing to achieve sustainable growth. In a nation like India, blockchain application in the supply chain is still new; therefore, supply chain players need a better understanding and awareness of blockchain through valuable insights. This article aims to study the mediating role of blockchain technology adoption (BLCT) for sustainable supply chain performance (SSCP). This study investigates the influence of numerous factors such as green and lean practices, supply chain integration, supply chain risk, performance expectancy, top management support, cost, internal and external environmental conditions, regulatory support, and innovation capability on BLCT adoption. A sample of 316 respondents from Indian ASC industries was collected, and structural equation modeling (SEM) was used. This study's outcomes show that green and lean practices, supply chain integration, supply chain risks, internal and external conditions, regulatory support, innovation capability, and cost positively influence BLCT adoption. Moreover, BLCT positively influences sustainable agriculture supply chain performance. This article is valuable for policymakers, managers, service providers, researchers, and academicians to understand the role of factors in influencing BLCT and BLCT's role in improving sustainable supply chain performance (SSCP).Entities:
Keywords: Agricultural-food supply chain (ASC); Blockchain technology (BLCT); Structural equation modeling (SEM); Sustainable supply chain performance (SSCP)
Year: 2021 PMID: 34898788 PMCID: PMC8647514 DOI: 10.1007/s10479-021-04423-3
Source DB: PubMed Journal: Ann Oper Res ISSN: 0254-5330 Impact factor: 4.854
Fig. 1Conceptual framework of the proposed blockchain application model
Proposed factors and sub-factors
| Sr.No. | Factors | Sub-factors/item | Author & year | Description |
|---|---|---|---|---|
| 1 | Green and lean practices (GLPR) | Efficient resource utilization (GLPR1) | Chiarini et al. ( | The combined concept of lean and green helps reduce waste, air pollution, and solid hazardous waste from the agri-food supply chain operations from farm to fork. Value steam mapping (VSM) and life cycle assessment tool (LCA) for green and lean management is mainly used to eliminate waste by exposing it and increasing the sustainable efficiency of agri-processes. |
| Reduction in emission (GLPR2) | ||||
| The energy efficiency of process and design (GLPR3) | ||||
| Lean tools and practices (GLPR4) | ||||
| Lean and green technologies (GLPR5) | ||||
| 2 | Supply chain integration (SUCI) | Understanding the requirement of SC players (SUCI1) | Chiarini et al. ( | Information sharing, resource sharing, collaboration, coordination, knowledge sharing of efficient strategies can improve the efficiency of each ASC activity such as farm operations, procurement, processing, distribution, and sales. For a sustainable ASC, firms need to involve suppliers and consumers to meet stringent food quality and safety regulations. |
| Information sharing (SUCI2) | ||||
| Collaboration, coordination, and strategic alliance (SUCI3) | ||||
| Public, private partnerships (SUCI4) | ||||
| Knowledge and innovation sharing (SUCI5) | ||||
| 3 | Supply chain risk (SUCR) | Delays in products delivery and pickup (SUCR1) | Wang et al. ( | The ASC is vulnerable to risks such as crop diseases and pest infestations due to uncertain weather conditions that need to be mitigated and controlled. The ASC also faces issues related to higher transaction settlement period as it includes labor-intensive activities and involvement of small holding farmers |
| Inadequate storage and delivery capacity (SUCR2) | ||||
| Demand volatility (SUCR3) | ||||
| Poor forecasting (SUCR4) | ||||
| Shortage of labor and driver (SUCR5) | ||||
| Road and border closures (SUCR6) | ||||
| Volatile fuel prices (SUCR7) | ||||
| 4 | Internal and external environment conditions (IEEC) | Availability of required resources (IEEC1) | Kouhizadeh et al. ( | Agricultural firms need to define BLCT adoption policies related to proper usage. ASCs includes many customs because of its maximum existence in rural area and producers still use conventional farming. This can cause opposition and hesitation from SC players also. The diversity of geographical and economic distribution of SC stakeholders affects privacy needs and the economic value of data at which they will be ready to share information. The current ASC is conventional and needs to be updated regarding machinery and facilities related to the latest advanced technology and process supporting BLCT adoption and sustainable supply chain (SSC) by gathering real-time information. The resources available to knowledge and expertise, such as internet connectivity at rural and urban agricultural sites and skilled labour, may affect both SSC and BLCT. |
| Knowledge, experience, and technical expertise (IEEC2) | ||||
| Presence of advanced information sharing (IEEC3) | ||||
| Intention to adopt blockchain (IEEC4) | ||||
| Competitive pressure (IEEC5) | ||||
| Social influence of customs, cultures, and people (IEEC6) | ||||
| 5 | Regulatory support (RESU) | Industry standards (RESU1) | Wong et al. ( | RESU is considered as a medium to eliminate the problem of trust among SC players in ASC. The RESU provides legal certainty to the users of BLCT by implementing guidelines related to data protection and its use for transparent SC processes. This will also improve the trust of ASC players in BLCT use. The specific and robust policies and laws for BLCT adoption in compliance with regulatory bodies and industry standards and adjusted to market conditions can quickly adapt. For quick adoption of BLCT, concerned regulatory bodies should financially support the policy makers of BLCT. |
| Compliance with regulatory bodies' regulations and policies (RESU2) | ||||
| Adjustment in policies with the market conditions (RESU3) | ||||
| Regulatory environment for data privacy and security (RESU4) | ||||
| Financial support from the associated authorities or regulators (RESU5) | ||||
| 6 | Performance expectancy (PERE) | Productivity after BLCT adoption (PERE1) | Stranieri et al. ( | This refers to the performance measures which are believed to be achieved after adopting blockchain and thus affect the intention to adopt blockchain. BLCT can improve the traceability of the system, which may also enhance perception about food product information, so the consumers can be ready to pay more for the products. Increased transparency due to improved information sharing for better management of vertical relationships among ASC players reduces transaction costs, thus can improve SCP. Improved traceability can also increase profits by maintaining stable production costs, food quality, and safety. However, flexibility and responsiveness within the ASC is not impacted by the BLCT adoption. The improved collaboration among SC stakeholders due to overcoming trust issues through BLCT helps develop competencies in competitive advantage, innovation, and the ability to identify weaknesses and handle it. |
| Speed of completing tasks/responsiveness (PERE2) | ||||
| Risk reduction (PERE3) | ||||
| Overall quality improvement (PERE4) | ||||
| 7 | Top management support (TMSU) | Active attention and response (TMSU1) | Wong et al. ( | This factor refers to top management's role in making decisions related to initiation, providing resources for blockchain adoption, and encouraging and motivating the employees. The insufficient knowledge of BLCT and its benefits and legislations are responsible for the low interest of top managers in inventing it and developing required skills. In ASC, there is a lack of empirical evidence on the BLCT adoption benefits in food safety and quality, inventory control, responsiveness, and risk management related to uncertainty like climate change and weather conditions, natural calamities, pest attacks etc. |
| Resource (e.g., labor, finances, and materials) accessibility approval (TMSU2) | ||||
| Willingness to accept BLCT adoption risks (TMSU3) | ||||
| Motivating employees for BLCT adoption (TMSU4) | ||||
| 8 | Innovation capability (INNC) | Application of innovative techniques (INNC1) | Wang et al. ( | It means a firm's ability to apply simple, creative, standardized, innovative solutions and technologies to improve ASC and protect it against risks related to climate, natural calamities, diseases etc. The innovative technique should provide real-time monitoring of all ASC players and bring them to one platform through a shared database. BLCT helps improve operations at regular intervals through continuous tracking of the event throughout the ASC from farm to fork. Thus, improving food safety, quality, reducing risks, and lead time leads to improved service and higher consumer satisfaction by delivering good quality products at a time. |
| Regular improvement in operations (INNC2) | ||||
| Adoption of innovative and technical solutions (INNC3) | ||||
| Application of standardized and straightforward operations (INNC4) | ||||
| Protection of SC against risks (INNC5) | ||||
| 9 | Cost (CO) | Infrastructure cost (CO1) | Wong et al. ( | This factor refers to the overall cost of SC from hardware, software, labor, maintenance, distribution, transportation, transaction to BLCT adoption cost. The reduction of human error due to its implementation also reduces costs at retailer and manufacturer’s ends. It also reduces administrative, infrastructure or facility, manpower, operational, energy, and maintenance costs due to lowered investment in paperwork, consumable items, time-saving, speedy decision making, improved management and administration, and shared database. BLCT enabled ASC to mitigate risks by efficiently managing demand and supply, thus reducing inventory management costs. Cryptographic signature protection and smart contracts may help prevent suppliers and other ASC players from frauds and ensure safe and secure transactions, thus reducing transaction costs. The improved traceability of BLCT enabled ASC leads to reduced SC cost by increasing responsiveness and assuring quality and safety of delivered food products. The cost incurred by SC risk such as climate change, riots, pandemic, order delay and missing, machine breakdown can also be reduced through BLCT adoption. |
| Maintenance and operational cost (CO2) | ||||
| Blockchain adoption cost (CO3) | ||||
| Transaction cost (CO4) | ||||
| 10 | Blockchain technology (BLCT) | Trust Or Reliability (BLCT 1) | Stranieri et al. ( | Smart contracts, real-time management of all SC activities and transactions helps in improving trust among SC partners and participation of smallholders. The immutability benefits of BLCT adoption is responsible for trust enhancement and a transparent system for improved traceability in ASC. BLCT eliminates intermediaries and ensures SC traceability and transparency in ASC to reduce risks by providing a decentratlized platform to all players of ASC to access authentic real-time information of product at any time and also track food items. The increased automation and common platform for food prices' bargaining help distributors eliminate intermediaries or traders through direct payment to customers. The provenance capability of BLCT provides ASC the last mile connectivity, and all the players can trace back the orgin of the food item througot the chain. BLCT accompanied by shared database, digital tokens and unique fingerprints for each food product ensures suitability and verifiability of information. The uncertainty of return on investment and dominance of traditional solutions can affect the capability of BLCT in ASC. The real-time monitoring of food products’s movements and custody promotes transparency in ASC. The common ledger for information storage and access can put the privacy of ASC firms at risk. The validation requirement for each transaction in BLCT enabled ASC to assure no change in information after storage, saving from fraud and ensuring information security. |
| Compatibility (BLCT 2) | ||||
| Transparency and traceability (BLCT 3) | ||||
| Immutability (BLCT 4) | ||||
| Smart contracts (BLCT 5) | ||||
| Complexity (BLCT 6) | ||||
| Disintermediation (BLCT 7) | ||||
| Automation (BLCT 8) | ||||
| Verifiability (BLCT 9) | ||||
| Auditability (BLCT 10) | ||||
| Security and privacy (BLCT 11) | ||||
| Acentric database (BLCT 2) | ||||
| Provenance (BLCT 13) | ||||
| 11 | Sustainable supply chain performance (SSCP) | SC overall cost (SSCP1) | Dubey et al. ( | In BLCT enabled SC, the availability of comprehensive data related to the shelf life of food can be used for food waste reduction. Firms can also reduce food poisoning, food recall, food spoilage, and food contamination by real-time monitoring of food through BLCT, thus reducing waste disposal and degradation to the environment by improving natural resource management. The improved traceability also helps in improving consumer health and the quality of products delivered to them in compliance with regulations. BLCT can also promote insurance programs for securing farmers against risks such as natural disasters and climate change. It can also help in raising awareness about environmental practices followed for food production. BLCT based contracts can help in reducing the exploitation of labor by assisting authorities in fairness in payments and taxation. BLCT can also tackle corruption and the insufficient environmental, social, and economic regulations in developing countries. |
| Environmental cost (SSCP2) | ||||
| The profitability of sales revenue (SSCP3) | ||||
| Reduction in environmental impact (SSCP4) | ||||
| Reduction in food waste and losses (SSCP5) | ||||
| Empowering farmers and small scale producers (SSCP6) | ||||
| Number of jobs created (SSCP7) | ||||
| Food safety and security (SSCP8) | ||||
| Stability of the workforce (SSCP9) |
Demographic profile
| Items | N (316) | %age | |
|---|---|---|---|
| Type of agro-industry | FFVs | 134 | 42.40 |
| Beverage | 112 | 35.44 | |
| Dairy | 70 | 22.15 | |
| Total | 316 | 100 | |
| Age | 25–35 | 132 | 41.77 |
| 36–55 | 109 | 34.49 | |
| 56–75 | 75 | 23.73 | |
| Total | 316 | 100 | |
| Gender | Male | 140 | 44.30 |
| Female | 176 | 55.69 | |
| Total | 316 | 100 | |
| Educational qualification | UG | 128 | 40.50 |
| PG | 118 | 37.34 | |
| Ph.D. | 70 | 22.15 | |
| Total | 316 | 100 | |
| Years of experience | 0–5 | 65 | 20.56 |
| 5–10 | 87 | 27.53 | |
| 10–15 | 93 | 29.43 | |
| 15–20 | 71 | 22.46 | |
| Total | 316 | 100 | |
| Designation | Executives | 105 | 33.23 |
| Managers | 78 | 24.68 | |
| Senior managers | 51 | 16.14 | |
| Technology service providers | 52 | 16.45 | |
| Technical consultants | 30 | 9.49 | |
| Total | 316 | 100 | |
Fig. 2CFA path diagram
Measurement items, loading factors, Cronbach’s alpha (α), Composite reliability (CR), and average variance extracted (AVE)
| Construct | Measurement items | Items | Loading | α | CR | AVE |
|---|---|---|---|---|---|---|
| BLCT | Reliability | BLCT1 | 1.000 | 0.965 | 0.944 | 0.912 |
| Compatibility | BLCT2 | 0.979 | ||||
| Transparency and traceability | BLCT3 | 1.325 | ||||
| Immutability | BLCT4 | 1.527 | ||||
| Smart contracts | BLCT5 | 0.961 | ||||
| Complexity | BLCT6 | 0.923 | ||||
| Disintermediation | BLCT7 | 0.930 | ||||
| Automation | BLCT8 | 0.940 | ||||
| Verifiability | BLCT9 | 0.924 | ||||
| Auditability | BLCT10 | 0.926 | ||||
| Security and privacy | BLCT11 | 0.942 | ||||
| Acentric database | BLCT12 | 0.923 | ||||
| Provenance | BLCT13 | 1.067 | ||||
| GLPR | Efficient resource utilization | GLPR1 | 1.000 | 0.962 | 0.951 | 0.903 |
| Reduction in emission | GLPR2 | 0.957 | ||||
| The energy efficiency of process and design | GLPR3 | 0.797 | ||||
| Lean tools and practices | GLPR4 | 0.973 | ||||
| Lean and green technologies | GLPR5 | 0.943 | ||||
| SUCI | Understanding the requirement of SC players | SUCI1 | 1.000 | 0.964 | 0.985 | 0.942 |
| Information sharing | SUCI2 | 1.049 | ||||
| Collaboration, coordination and strategic alliance | SUCI3 | 0.830 | ||||
| Public, private partnerships | SUCI4 | 1.210 | ||||
| Knowledge and innovation sharing | SUCI5 | 0.805 | ||||
| SUCR | Delays in products delivery and pickup | SUCR1 | 1.000 | 0.967 | 0.974 | 0.911 |
| Inadequate storage and delivery capacity | SUCR2 | 0.875 | ||||
| Demand volatility | SUCR3 | 0.927 | ||||
| Poor forecasting | SUCR4 | 0.873 | ||||
| Shortage of labor and driver | SUCR5 | 0.856 | ||||
| Road and border closures | SUCR6 | 0.954 | ||||
| Volatile fuel prices | SUCR7 | 0.836 | ||||
| IEEC | Availability of required resources | IEEC1 | 1.000 | 0.903 | 0.978 | 0.813 |
| Knowledge, experience, and technical expertise | IEEC2 | 1.043 | ||||
| Presence of advanced information sharing | IEEC3 | 1.028 | ||||
| Trust in blockchain | IEEC4 | 1.044 | ||||
| Competitive pressure | IEEC5 | 0.920 | ||||
| Social influence of customs, cultures, and people | IEEC6 | 0.715 | ||||
| RESU | Industry standards | RESU1 | 1.000 | 0.881 | 0.961 | 0.815 |
| Compliance with regulatory bodies' regulations and policies | RESU2 | 0.587 | ||||
| Adjustment in policies with the market conditions | RESU3 | 1.304 | ||||
| Regulatory environment for data privacy and security | RESU4 | 0.540 | ||||
| Financial support from the associated authorities or regulators | RESU5 | 0.594 | ||||
| PERE | Productivity after BC adoption | PERE1 | 1.000 | 0.924 | 0.925 | 0.911 |
| Speed of completing tasks/responsiveness | PERE2 | 1.425 | ||||
| Risk reduction | PERE3 | 0.794 | ||||
| Overall quality improvement | PERE4 | 0.441 | ||||
| TMSU | Active attention and response | TMSU1 | 1.000 | 0.850 | 0.917 | 0.814 |
| Resource (e.g., labor, finances, and materials) accessibility approval | TMSU2 | 0.854 | ||||
| Willingness to accept BC adoption risks | TMSU3 | 0.669 | ||||
| Motivating employees for BC adoption | TMSU4 | 0.599 | ||||
| INNC | Application of innovative techniques | INNC1 | 1.000 | 0.853 | 0.925 | 0.834 |
| Regular improvement in operations | INNC2 | 0.976 | ||||
| Adoption of innovative and technical solutions | INNC3 | 0.919 | ||||
| Application of standardized and straightforward operations | INNC4 | 0.820 | ||||
| Protection of SC against risks | INNC5 | 0.931 | ||||
| CO | Infrastructure cost | CO1 | 1.000 | 0.857 | 0.951 | 0.816 |
| Maintenance and operational cost | CO2 | 0.989 | ||||
| Blockchain adoption cost | CO3 | 0.947 | ||||
| Transaction cost | CO4 | 1.171 | ||||
| SSCP | SC overall cost | SSCP1 | 1.000 | 0.971 | 0.960 | 0.937 |
| Environmental cost | SSCP2 | 0.985 | ||||
| The profitability of sales revenue | SSCP3 | 0.971 | ||||
| Reduction in environmental impact | SSCP4 | 0.969 | ||||
| Reduction in food waste and losses | SSCP5 | 0.963 | ||||
| Empowering farmers and small-scale producers | SSCP6 | 0.974 | ||||
| Number of jobs created | SSCP7 | 0.946 | ||||
| Food safety and security | SSCP8 | 0.942 | ||||
| Stability of the workforce | SSCP9 | 0.939 |
Discriminant validity
| BLCT | IEEC | SUCI | CO | TMSU | PERE | RESU | SUCR | SSCP | INNC | GLPR | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BLCT | 0.954 | ||||||||||
| IEEC | 0.140* | 0.901 | |||||||||
| SUCI | 0.157** | 0.089 | 0.970 | ||||||||
| CO | 0.339** | 0.291** | 0.180** | 0.903 | |||||||
| TMSU | 0.124* | 0.180** | 0.220** | 0.308** | 0.902 | ||||||
| PERE | 0.100 | 0.035 | 0.028 | 0.279** | 0.092 | 0.954 | |||||
| RESU | 0.134* | 0.124* | 0.168** | 0.396** | 0.245** | 0.213** | 0.902 | ||||
| SUCR | 0.069 | − 0.006 | − 0.063 | 0.083 | − 0.058 | 0.085 | 0.025 | 0.954 | |||
| SSCP | 0.173** | 0.000 | 0.056 | 0.033 | 0.105 | 0.004 | 0.009 | 0.175** | 0.967 | ||
| INNC | 0.046 | 0.003 | 0.005 | 0.048 | − 0.048 | − 0.009 | 0.021 | 0.019 | 0.081 | 0.913 | |
| GLPR | 0.142* | − 0.025 | 0.119* | 0.102 | 0.245** | 0.336** | 0.036 | − 0.019 | 0.060 | 0.050 | 0.950 |
*Correlation is significant at the 0.05 level (2-tailed).
**Correlation is significant at the 0.01 level (2-tailed).
Fig. 3SEM path diagram
Results of hypotheses testing
| Serial number | Hypotheses | Standardized estimates | Supported (Yes/No) | In contrast with | In agreement with |
|---|---|---|---|---|---|
| 1 | GLPR is positively associated with BLCT | 0.121 | Yes | ||
| 2 | SUCI is positively associated with BLCT | 0.072 | Yes | Karamchandani et al. ( | |
| 3 | SUCR is positively associated with BLCT | 0.037 | Yes | ||
| 4 | IEEC is positively associated with BLCT | 0.078 | Yes | ||
| 5 | RESU is positively associated with BLCT | 0.038 | Yes | Wong et al. ( | |
| 6 | PERE is positively associated with BLCT | − 0.036 | No | Queiroz et al. ( | |
| 7 | TMSU is positively associated with BLCT | − 0.012 | No | Wong et al. ( | |
| 8 | INNC is positively associated with BLCT | 0.027 | Yes | ||
| 9 | CO is positively associated with BLCT | 0.331 | Yes | Wong et al. ( | |
| 10 | BLCT is positively associated with SSCP | 0.178 | Yes |
Results of mediation effect
| Relationship | Direct effect | Indirect effect | Result |
|---|---|---|---|
| SUCR→BLCT→SSCP | 0.178 (0.002)* | 0.009 (0.217) | – |
| IEEC→BLCT→SSCP | − 0.024 (0.662) | 0.008 (0.281) | – |
| SUCI→BLCT→SSCP | 0.031 (0.577) | 0.015 (0.057)* | Full mediation |
| TMSU→BLCT→SSCP | 0.119 (0.057)* | − 0.003 (0.609) | – |
| GLPR→BLCT→SSCP | 0.017 (0.707) | 0.019 (0.028)* | Full mediation |
| PERE→BLCT→SSCP | − 0.021 (0.750) | − 0.005 (0.476) | – |
| INNC→BLCT→SSCP | 0.078 (0.179) | 0.004 (0.562) | – |
| RESU→BLCT→SSCP | − 0.021 (0.653) | − 0.001 (0.922) | – |
| CO→BLCT→SSCP | − 0.064 (0.416) | 0.051 (0.006)* | Full mediation |
*Significant at α < 0.10 (2-tailed test); P values are shown in parentheses.