Blockchain Adoption Strategy in E-commerce Supply Chain with Competing Retailers

Abstract

Generally, it is difficult for consumers to accurately authenticate the product information disclosed by online e-commerce platforms in traditional e-commerce supply chain. Therefore, due to the information immutability and traceability of blockchain technology, blockchain has become an important tool for consumers to judge product information. To analyze the application strategies of blockchain technology, we construct Stackelberg game model in an e-commerce supply chain, consisting of one supplier and two retailers, and explore blockchain adoption strategies from the perspectives of supply chain competition. First, we indicate the equilibrium results of product price, the supplier and retailers profits and consumer surplus, and show the accuracy of consumers quality judgement on the products produced by the supplier always has a positive impact. Furthermore, we discuss the optimal strategies with blockchain technology effect and find retailers competition and consumers quality judgement on the products would impact blockchain adoption decisions and the profits of the whole supply chain. It indicates that retailers different blockchain technology implement decisions are beneficial to the social welfare of the whole supply chain. Finally, we analyze the impact of blockchain technology on optimal decision-making and consumers judgment of product information. And we find that when the proportion of expert consumers in the supply chain is high, the supplier prefers to improve product quality management capability and retailers would apply blockchain technology. The main contribution of this study is to combine the analysis of blockchain implement with different consumers judgement in competitive e-commerce supply chain, which reveals the value of blockchain technology service, transaction modes and retailers competitive relationship in supply chain.

Keywords

Blockchain technology / competitive supply chain / product information disclosure / E-commerce transactions / consumer type

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