BLOCKCHAIN AND SUPPLY CHAIN SUSTAINABILITY

Background: Supply chain sustainability is a central concern of most organizations. The main objective of sustainable supply chains is to create and maintain long term economic, social, and environmental value for all stakeholders involved in delivering products and services to markets. As sustainability constitutes one of the critical drivers of innovation, the recent emergence of blockchain technology typifies the disruptive impact of digital innovation on supply chain sustainability. Blockchain is a foundational technology that poses a shift in the development of supply chain sustainability. Methods: Despite the increasing importance of blockchain in improving supply chain efficiencies and bringing societal changes, research investigating its potentialities from the lens of sustainability is scarce. Therefore, the primary goal of this paper is to fill this knowledge gap and synthesize the literature from leading journals on the topic of blockchain and its relation to supply chain sustainability. Papers were collected from different scientific databases and carefully analyzed. The possibilities of blockchains are identified and classified according to the triple bottom line framework, namely the economic, social, and environmental dimensions of sustainability. Results and conclusions: The majority of studies focused on the economic implications of blockchains on supply chains. The sustainable economic aspects of the technology identified in the reviewed literature are mostly the transformational potentials of blockchains and their capabilities to drive new disintermediated business models, higher operational efficiencies, cost advantages, and additional sources of value creation. The social empowerment of supply chains is found through the ability of blockchain to create trustful relationships among supply chain partners, increase food safety, support humanitarian logistics, and promote social equity. Moreover, firms attempting to move forward in their environmental policies and strategies can use blockchain to extend their efforts to improve their environmental practices across the supply chain, reduce the strain on energy and natural resources, and offer environmentally friendly products.