Network effects in blockchain and supply chain: A theoretical research synthesis

Purpose: This paper addresses a gap in research literature in the fields of blockchain technology (BC), supply chain network dynamics (SC) and network effect phenomena (NE). Extant BC and SC literature describes the potential benefits to be reaped through the adoption of BC technology. While BC technology does not yet meet the researched expectations of adoption, performance and efficacy, the authors analyze the three inter-related fields (BC, SC and NE) to bridge this gap in theory. Design/methodology/approach: This paper begins with a research review correlating the technological fundamentals of BC technology into fundamental value propositions for SC logistics contexts. The authors review the gap between these theoretical technological functions and the current ecosystem of BC applications. With an overarching understanding of BC in SC contexts, this paper then explores the phenomena of NE and attempts to synthesize various interrelated aspects of the three fields (BC, SC and NE). Research frameworks from extant literature are used for cross-comparing legacy software/information system solutions with potential and existing BC-based solutions. Case studies are utilized to support this analysis. Findings: Several key considerations and themes are identified to better inform practitioner and researcher decision-making. Novel insights pertain to BC platform architecture and application modularity, integrated governance and decision-making capabilities, and the automation capabilities that arise from a healthy application and smart contract ecosystem. Originality/value: The core contribution is the synthesis of network effect theory with SC phenomena and BC theory and the exploration of how these three fields are inter-related in the maturation of BC technology. Specifically, the authors deepen insights from extant literature by contextualizing findings with relevant interdisciplinary theoretical frameworks.