The influence of blockchains and internet of things on global value chain

Abstract

Copyright © 2022 The Authors. Despite the increasing proliferation of deploying the internet of things (IoT) in the global value chain (GVC), several challenges might lead to a lack of trust among value chain partners, for example, technical challenges (i.e., confidentiality, authenticity, and privacy); and security challenges (i.e., counterfeiting, physical tampering, and data theft). In this study, we argue that blockchain technology (BT), when combined with the IoT ecosystem, will strengthen GVC and enhance value creation and capture among value chain partners. Therefore, we examine the impact of BT combined with the IoT ecosystem and how it can be utilized to enhance value creation and capture among value chain partners. We collected data through an online survey, and 265 U.K. Agri-food retailers completed the survey. Our data were analyzed using structural equation modeling. Our finding reveals that BT enhances GVC by improving IoT scalability, security, and traceability combined with the IoT ecosystem. Moreover, the combination of BT and IoT strengthens GVC and creates more value for value chain partners, which serves as a competitive advantage. Finally, our research outlines the theoretical and practical contribution of combining BT and the IoT ecosystem.