Impact of Consumers Traceability Awareness on Blockchain Adoption in Supply Chains

Abstract

Blockchain technology (BCT) has emerged as a promising solution for ensuring supply chain traceability. However, not all consumers have a comprehensive understanding of the benefits associated with BCT-enabled traceability. In this article, we investigate the impacts of consumer awareness on the adoption of BCT within a supply chain comprising a manufacturer and a retailer. We develop two distinct scenarios: Scenario B, where the supply chain traceability is managed via traditional digital systems, and Scenario E, where the supply chain traceability is managed via BCT-enabled systems. We introduce the concept of consumer traceability awareness level, representing the proportion of the consumer population that is knowledgeable about the advantages of these traceability technologies. The findings reveal that the adoption of BCT enhances the overall performance of the supply chain and makes it more sensitive to the consumer traceability awareness level. Nonetheless, the manufacturer consistently experiences advantages from BCT adoption, whereas the retailer's situation may deteriorate. In both scenarios, a low traceability awareness level prompts the retailer to target all consumers, whereas a high-traceability awareness level shifts its focus solely to the knowledgeable consumers. Intriguingly, the adoption of BCT shifts the retailer's inclination toward targeting the knowledgeable consumers rather than all consumers.