Blockchain for supply chain: performance implications and contingencies

Abstract

Purpose

This study aims to examine the performance implications of blockchain implementation in the supply chain and explore how blockchain functions and supply chain processes of blockchain implementation moderate the effect on firm performance.

Design/methodology/approach

Using 220 blockchain implementations announced between January 2015 and December 2022, we use the event study methodology to estimate the effects of blockchain implementation on the firm value. Regression analyses are conducted to examine the moderating effects of blockchain functions and supply chain processes.

Findings

First, there is a positive and statistically significant relationship between blockchain implementation in the supply chain and firm value. Second, we find that abnormal returns from blockchain implementation are higher when used with blockchain’s contract automation function and applied in downstream processes, supporting the moderation effects.

Originality/value

The study provides empirical evidence on the effects of the blockchain implementation on firm performance, taking into account the complexity of blockchain functions and supply chain processes. It enriches the current understanding of how blockchain implementation in the supply chain contributes to firm value.

Citation

Liu, Y. and Wang, Q. (2025), "Blockchain for supply chain: performance implications and contingencies", Industrial Management & Data Systems, Vol. 125 No. 1, pp. 364-383. https://doi.org/10.1108/IMDS-05-2024-0457