The Implementation of Blockchain Technology in a Joint Sustainability Development

Abstract

Recent advancements in supply chain literature have focused on joint sustainability within the context of supplier-manufacturer relationships, particularly in scenarios in which suppliers may exhibit insufficient sustainability efforts. This study examines the intersection of joint sustainability and advanced digital technology adoption (such as Blockchain) from the fourth industrial revolution (Industry 4.0) perspective. This investigation elucidates the potential effects of implementing such technologies. However, the effects of these technologies on overall channel member profits are not a straightforward outcome due to the currently insufficient digitization levels among the stakeholders. By employing a game theory-based numerical analysis approach, the efficacy of Blockchain technology in enhancing joint sustainability efforts is assessed. We found that implementing Blockchain technology can improve channel members’ profits by enabling them to make better decisions regarding pricing, subsidies, and sustainability efforts in the joint sustainability context. We also found that while the implementation can provide more benefits to the market, individual consumer benefits can be harmed by the supplier’s opportunistic implementation behavior. This research contributes to a deeper understanding of the complexities surrounding joint sustainability development and the integration of Blockchain technology in the evolving landscape of digital supply chain innovation.