The mitigating role of blockchain-enabled supply chains during the COVID-19 pandemic

Xiong, Yangchun, Lam, Hugo KS ORCID: 0000-0002-4674-6145, Kumar, Ajay, Ngai, Eric WT, Xiu, Chunyu and Wang, Xinyue (2021) The mitigating role of blockchain-enabled supply chains during the COVID-19 pandemic. INTERNATIONAL JOURNAL OF OPERATIONS & PRODUCTION MANAGEMENT, 41 (9). pp. 1495-1521.

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Abstract

<jats:sec><jats:title content-type="abstract-subheading">Purpose</jats:title><jats:p>Although there have been considerable discussions on the business value of adopting blockchain in supply chains, it is unclear whether such blockchain-enabled supply chains (BESCs) can help firms mitigate the negative impact resulting from the recent COVID-19 pandemic. This study aims to answer this important question.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title><jats:p>The authors conduct an event study to quantify the financial effects of the COVID-19 pandemic and compare the differences in such effects between treatment firms that have adopted BESCs and matched control firms that have not adopted BESCs. The authors also perform a regression analysis to examine how the role of BESCs in mitigating COVID-19's negative impact varies across firms with different levels of supply chain leanness and complexity. The analysis is based on 88 treatment firms and 88 matched control firms, all of which are publicly listed on the US stock markets.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Findings</jats:title><jats:p>The test results suggest that although both the treatment and control firms are negatively affected by the COVID-19 pandemic, the effect is less negative for the treatment firms compared to the control firms, demonstrating the role of BESCs in mitigating the negative impact caused by the COVID-19 pandemic. Moreover, the mitigating role of BESCs is more pronounced for firms with lean and complex supply chains.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Originality/value</jats:title><jats:p>This study is among the first to provide empirical evidence on the mitigating role of BESCs during the COVID-19 pandemic, highlighting the importance of adopting blockchain in supply chains with high uncertainties and disruption risks.</jats:p></jats:sec>

Item Type:	Article
Uncontrolled Keywords:	Blockchain, Supply chain management, COVID-19, Event study, Abnormal stock returns, Contingency theory
Divisions:	Faculty of Humanities and Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	24 Jun 2021 07:51
Last Modified:	18 Jan 2023 22:33
DOI:	10.1108/IJOPM-12-2020-0901
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3127486