EMERGENCE OF BLOCK CHAIN AND ITS IMPACT ON SUPPLY CHAIN PERFORMANCE THROUGH AGILITY, TRANSPARENCY AND FLEXIBILITY

Abstract

Purpose The purpose ofthis paper is to illustrate how block chain technology can improve supply chain parameters that are agility, flexibility and transparency which collectively enhance overall supply chain performance. Methodology & Design The conceptual framework of the present study is developed by conducting an extensive literature review on block chain technology, supply chain agility, flexibility and transparency. The sample data were collected from 355 supply chain practitioners in Pakistan’s construction sector to validate the conceptual model. Confirmatory factor analysis was conducted to ascertain the validity ofthe measures used and a structural model was analyzed for testing the proposed conceptual framework. Findings The results of the present study show that block chain technology can improve supply chain agility, flexibility and transparency which lead to better firm performance. Limitations Currently, the respondents do not have practical experience of using block chain technology. They have responded based on their knowledge about supply chain and block chain which they acquired from published sources. Different supply chains require different strategic choices and different information needs. But the present study assumes that all supply chain needs are identical. The present study assumes that government regulations regarding block chain technology are favorable; however, currently, there is no legal framework to address block chain technology. The findings of the current study indicate that companies not only should create more awareness regarding block chain but also should actively work with IT companies that are engaged in developing block chain-based supply chain solution. Managers, as well as IT companies and academicians, should join hands to study and develop a framework for regulating block chain technology and suggest these to the policy actors. Recommendations The present study shows that supply chain practitioners are confident that block chain technology will help improve supply chain parameters. These findings can help construction sector and their marketers for developing and promoting block chain-based supply chain management. In addition, the important implication for supply chain practitioners is that block chain helps in increasing supply chain performance.