Blockchain: An opportunity to improve supply chains in the wake of digitalization

Abstract

Industry 4.0 technologies have created the opportunity to overcome inefficiencies along the supply chain by offering data transparency, tracing, and security. In this regard, the role of blockchain technology has garnered a lot of attention among practitioners as well as academia. Blockchain's decentralized and immutable nature ensures trustworthy data sharing, real-time tracking, and enhanced cybersecurity. However, adoption in emerging markets has not been as fast as in developed countries. There has been little clarity as to what the drivers and barriers to its adoption are, and what role governments and academia should play in the process. The present study addresses these issues using a qualitative study that utilizes data obtained from semi-structured interviews conducted with blockchain companies and supply chain companies in Latin America. Results show that the main barriers are 1) low knowledge about blockchain, 2) insufficient information, connectivity, and financial infrastructure, 3) lack of clear regulation, 4) a scarce presence of a local market for entrepreneurs to produce blockchain applications. It is also interesting to find that in contrast to lack of skilled manpower in many emerging economies globally, Latin America has skilled human capital for blockchain adoption. Thus, emerging markets need to foster collaborative work between companies, government, and academia to overcome these barriers and be able to enjoy blockchain benefits while increasing competitiveness in supply chains.