Impact of blockchain on sustainable supply chain practices : A study on blockchain technology’s benefits and current barriers in sustainable SCM

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Impact of blockchain on

sustainable supply

chain practices

A study on blockchain technology’s benefits and current

barriers in sustainable SCM

MASTER THESIS WITHIN: Business Administration NUMBER OF CREDITS: 30 ECTS

PROGRAMME OF STUDY: MSc in International Logistics and Supply Chain Management

AUTHORS: Jonathan Berg, Lauri Myllymaa SUPERVISOR:Elvira Kaneberg, PhD JÖNKÖPING 05/2021

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Master Thesis in Business Administration

Title: Impact of blockchain on sustainable supply chain practices Authors: Jonathan Berg and Lauri Myllymaa

Tutor: Elvira Kaneberg Date: 2021-05-24

Key terms: Supply Chain; Blockchain; Transparency; Traceability; Sustainability; Consumer products

Abstract

Background: The increasing supply chain complexity has made verification of sustainable practices a challenging objective to achieve. Blockchain has been discussed as a potential solution to improve several aspects of sustainable supply chain management (SSCM), as traceability and proof of origin for products are increasingly demanded by consumers. This emerging technology was initially developed as a secure distributed ledger for the cryptocurrency sector but has since been implemented in various industries from food to healthcare and logistics.

Purpose: The purpose of this thesis is to analyze how blockchain technology can facilitate more transparent sustainable supply chain practices. Two research questions are answered regarding the current barriers and main benefits in the consumer product sector. Method: This thesis takes a qualitative approach to investigate how blockchain can generate more transparent supply chains from a social and environmental perspective. As a multi-case study, triangulation is achieved by analyzing blockchain’s potential to improve transparency and traceability from different viewpoints. Interviews were conducted with consumer product companies to understand current sustainability challenges and with blockchain experts to gain further insight into blockchain’s potential to solve these issues. By gathering data from various perspectives, this thesis takes an exploratory approach combined with a qualitative approach in accordance with the constructional position.

Conclusion: This thesis contributes to the current state of blockchain awareness by identifying and distinctively naming the practical challenges. Companies can gain increased understanding of blockchain and its current challenges in SSCM, regardless of their industry. By knowing which practical challenges blockchain can solve, their willingness to implement the technology can be heightened. The current barriers are presented to emphasize that the knowledge about blockchain needs to be improved before widespread adoption of blockchain is possible. Four practical challenges for consumer product companies were identified: trustworthy information, geographical distance, supply chain complexity, and tracking.

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3. Methodology 24 3.1 Research philosophy 24 3.2 Research design 25 3.3 Research approach 26 3.4 Case study 27 3.5 Data collection 27 3.5.1 Literature review 27 3.5.2 Interviews 29 3.5.3 Sampling strategy 32 3.6 Data analysis 34 3.7 Quality insurance 35 3.8 Ethics 36 4. Empirical findings 39

4.1 Company case: Furniture retailer (R1) 39

4.2 Company case: Escarpment Winery (R2) 41

4.3 Company case: Coop (R3) 44

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4.5 Company case: Canadian Blockchain Supply Chain Association (R5) 49

4.6 Company case: IBM (R6) 53

4.7 Company case: Siemens (R7) 58

5. Analysis 61

5.1 Framework for analysis 61

5.2 Barriers 61

5.2.1 Internal 62

5.2.2 Supply Chain 63

5.2.3 Technical 63

5.2.4 External 64

5.3 Key benefits of blockchain for SSCM 65

5.4 Practical challenges in consumer product sector 67

5.4.1 Trustworthy information 68

5.4.2 Geographical distance 69

5.4.3 Supply chain complexity 69

5.4.4 Tracking 70 6. Conclusion 71 6.1 Theoretical implications 72 6.2 Managerial implications 72 6.3 Ethical implications 73 6.4 Limitations 73 6.5 Future research 74 7. References 75 8. Appendix 81

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List of abbreviations

AI = Artificial Intelligence

CBSCA = Canadian Blockchain Supply Chain Association CSR = Corporate Social Responsibility

ID = Identification IoT = Internet of Things IP = Intellectual Property IT = Information Technology QR code = Quick Response Code RFID = Radio Frequency Identification ROI = Return on Investment

SC = Supply Chain

SCM = Supply Chain Management

SME = Small and Medium-sized Enterprise SSC = Sustainable Supply Chain

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Figures

Figure 1. Blockchain explained. ... 6

Figure 2. Illustration of block contents ... 8

Figure 3. Three foundational blocks of sustainability. ... 11

Figure 4. Evolution of supply chains ... 16

Figure 5. Current barriers of blockchain adoption in SSCM ... 21

Figure 6. Summary of theoretical framework ... 23

Figure 7. Links between theoretical framework and research questions ... 39

Figure 8. TradeLens pilot project with a flower supply chain ... 56

Figure 9. Siemens, pairing blockchain with IoT ... 59

Figure 10. Framework for analysis ... 61

Figure 11. The most prevalent barriers from empirical findings ... 64

Figure 12. Practical challenges in SSCM in consumer product industry ... 68

Tables

Table 1. Benefits of blockchain, as discussed in the literature. ... 17

Table 2. Interview information ... 32

Table 3. Company criteria ... 33

Table 4. Blockchain expert criteria ... 33

Table 5. Coding scheme for data analysis ... 35

Table 6. Key principles in research ethics ... 37

Appendix

Appendix 1. TradeLens powered by blockchain technology………..…………..…..81

Appendix 2. Interview questions for consumer product companies……...…………82

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1. Introduction

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This section provides a background of the study, research problem, purpose, research questions and lastly, thesis structure.

_________________________________________________________________ 1.1 Background

Blockchain technology has gained momentum as a new exciting innovation during the 2010’s, and according to scholars, it has significant potential to revolutionize supply chain activities (Kshetri, 2018; Saberi et al., 2019). From a supply chain management (SCM) perspective, blockchain has been introduced as a solution to improve traceability and transparency of global supply chains (Saberi et al., 2019).

The field of supply chain management (SCM) has become well-established during the last couple of decades. The SCM concept in its infancy was structured around the efficiency and effectiveness of the flow of money, information, and goods/services (Christopher & Holweg, 2011). In pace with globalization, SCM has had to adapt to complex disruptions and new challenges (Seuring & Muller, 2008). Among the current challenges, the asymmetry of information concerned with actors in SCM that do not have enough insight into their partner's operations is caused by the fact that the information collected is often stored within one organization or intermediary (Saberi et al., 2019). The asymmetry of information is further complicated by the external pressure from consumers and stakeholders for supply chains to become more sustainable (Kouhizadeh et al., 2021). The concept of sustainability is built upon three foundational blocks: economical, ecological, and social development (Carter & Rogers, 2008). These blocks are interrelated and dependent on each other to fulfill sustainable growth (Tay et al., 2015; Carter & Easton, 2011). Sustainability within a supply chain is not only a firm’s individual responsibility but also a collective duty, where all the actors need to have a collaborative approach (Gardner et al., 2019). In the following, we refer to sustainable supply chain management with the abbreviation ‘SSCM’.

More stakeholders are demanding that organizations and supply chains make the transition to more environmental and socially responsible operations and activities

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(Srivastava, 2007; Tay et al., 2015). From the consumer perspective, Rane et al. (2020) add that an increasing number of consumers are asking for products' environmental and social impact and demand more transparent and traceable supply chains. Transparency can be defined as a context of the SSCM framework where information is accessible and apparent to specific stakeholders and consumers (Gardner et al., 2019). Traceability can be viewed as a way to identify components and the chronological order of supply chain activities (Venkatesh et al., 2020). However, due to the complexity of the supply chain, transparency through the whole chain becomes a challenging strategy to achieve (Saberi et al., 2019).

Converting complex supply chains to fulfill sustainability requirements is a costly process that requires reshaping at both inter- and intraorganizational level (Tay et al., 2015). Previous studies indicate that blockchain technology gives companies the attributes to overcome these barriers of transitioning and become more sustainable (Rane et al., 2020; Kouhizadeh et al., 2021; Saberi at al., 2019). Blockchain is defined as a decentralized database that contains transactions as blocks of data which are chained together in chronological order (Swan, 2015). Blockchain was developed as a secure decentralized technology behind bitcoin, removing the need for third-party intermediaries. Although most of its early applications revolved around cryptocurrencies and the financial sector, the potential of blockchain has since been identified in a larger context (Swan, 2015; Yli-Huumo et al., 2016). Blockchain technology has been implemented in food, healthcare, and logistics supply chains where traceability and proof of origin for products are in high demand (Kouhizadeh et al., 2021).

According to Kshetri (2018), blockchain affects various aspects and objectives of SCM, including cost, quality, speed, dependability, risk, and sustainability. Furthermore, blockchain can be utilized in supply chains to confirm the time and location of each transaction and to determine who is accountable for which action (Kshetri, 2018). Scholars have discussed traceability, data security, auditability, accountability, and transparency as potential features of blockchain to revolutionize SSCM (Wong et al., 2020; Saberi et al., 2019; Kshetri, 2018). Traceability and transparency have been recognized as the relevant benefits when it comes to environmental and social aspects of sustainability (Kamble et al., 2020; Venkatesh et al., 2020). Therefore, these two benefits and sustainability aspects are discussed more in detail in this paper.

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3 1.2 Research Problem

The literature suggests that implementing blockchain would be beneficial to various industries and companies, regardless of their size (Wong et al., 2020; Ko et al., 2018). However, companies have to overcome some barriers, such as lack of resources, knowledge, and industry regulations, which remains the practical problems during the early stages of blockchain development (Wong et al., 2020).

Blockchain technology is a rather new phenomenon for SCM, and there are research gaps that have not yet been covered. According to a systematic review by Yli-Huumo et al. (2016), there are potential benefits as well as challenges that have been left unstudied previously. The results of their review show that over 80% of the papers focus on the Bitcoin system and less than 20% focus on industrial applications such as smart contracts (Yli-Huumo et al., 2016) which enable automated verification of transactions in SCM (Christidis & Devetsikiotis, 2016). According to Yli-Huumo et al. (2016), further research is required on proposed solutions of blockchain, especially outside the cryptocurrency sector.

Manufacturers and retailers are required by consumers and governments to disclose their products' social and environmental impact (Kamble et al., 2020; Hastig & Sodhi, 2020). This sets pressure on companies to trace back consumer products from the end-user to their initial source (Venkatesh et al., 2020; Hastig & Sodhi, 2020). As an emerging technological innovation, blockchain sets the foundation for the future market environment and it is important that companies are aware of these disrupting technologies (Wong et al., 2020; Erol et al., 2016).

1.3 Research Purpose and Research Questions

From the main benefits of blockchain, transparency has been recognized as a fundamental factor in relation to environmental and social sustainability in supply chains (Venkatesh et al., 2020). The purpose of this thesis is to analyze how blockchain technology can facilitate more transparent sustainable supply chain practices. Particularly, we investigate how blockchain technology can improve transparency and traceability among supply chains in the consumer product sector. To fulfill the research purpose, the following research questions will be answered:

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RQ1: What are the barriers to implement blockchain technology in a sustainable supply chain?

RQ2: What are the key benefits of blockchain technology to verify social and environmental practices in the consumer product industry?

1.4 Thesis Structure

This study is structured as follows: firstly, the relevant information about blockchain technology and sustainable supply chain management (SSCM) is presented to provide a comprehensive background. These two topics are further discussed to draw a connection and to find the most relevant aspects of blockchain in terms of supply chain sustainability, with its main benefits and current challenges. Secondly, the research methodology is presented, including research philosophy, research design, data collection methods, analysis process, and research ethics. Thirdly, the findings of the empirical study are presented case by case. This is followed by an analysis of empirical findings in relation to theory. Lastly, this study concludes with theoretical and managerial implications, limitations, and future research opportunities.

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2. Theoretical framework

______________________________________________________________________

The following chapter presents theoretical aspects relevant for the thesis. Firstly, blockchain technology is introduced by explaining its background and industrial applications. Secondly, the relevant aspects of SSCM are discussed, followed by the benefits and barriers of blockchain adoption in SSCM.

______________________________________________________________________ 2.1 Blockchain technology

Blockchain technology was originally developed in the bitcoin context to facilitate secure data collection and exchange of cryptocurrency. Although bitcoin itself has been a highly controversial topic throughout its existence, the underlying blockchain technology has functioned flawlessly in all its financial, as well as non-financial applications (Crosby et al., 2016). Researchers view blockchain technology to be a disruptive technology that will have a more significant role in how future supply chains operate (Kshetri, 2018; Kouhizadeh et al., 2021).

As a decentralized immutable database, blockchain provides a safe environment for transactions between two or more actors (Schmidt & Wagner, 2019). Transactions are chained together as blocks of data in chronological, immutable order which enables stakeholders to share information in a secure and transparent way (Swan, 2015; Yli-Huumo et al., 2016). New blocks are linked to a previously written block, confirmed and stored in the disk storage of multiple users in various locations, called ‘nodes’ (as illustrated in Figure 1 below which explains the blockchain transaction step by step). After confirming all transactions, a consensus exists between all the nodes which enables blockchain’s reputation as a secure, scalable, and transparent decentralized technology (Yli-Huumo et al., 2016).

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Figure 1. Blockchain explained. Source: adapted from (PWC, 2021)

According to various researchers, blockchain technology has been determined as the next major disruptive technology (Crosby et al., 2016; Kshetri, 2018; Schmidt & Wagner, 2019). After the Internet revolutionized the way, we exchange information and the mobile and social networking changed the way we communicate, blockchain has the revolutionary potential as the secure economic layer that the Internet itself has been lacking (Saberi et al., 2019; Swan, 2015). Swan (2015) divides blockchain into separate entities: blockchain 1.0 for currency transfer and digital payment systems, blockchain 2.0 for contracts beyond simple currency transactions (such as loans, smart property, and smart contracts) and blockchain 3.0 for other applications beyond currency, finance and markets. These other applications include intellectual property (IP) in various fields from art to science. For SCM, blockchain 2.0 receives the most attention as it deals with contracts across various financial and industrial areas (Swan, 2015).

2.1.2 Smart Contracts

Smart properties (both tangible and intangible assets) are exchanged in blockchain 2.0 as smart contracts in a decentralized open-source platform such as Ethereum (Swan, 2015). Smart contracts that are stored in blockchains are heavily automated scripts which enable transactions to be verified between different actors. As one of the key features of blockchain, smart contracts automate business processes while reducing costs and human errors (Manupati et al., 2020). Smart contracts promote accountability, trust and traceability as all transactions can be tracked down and audited in a secure, decentralized

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database (Christidis & Devetsikiotis, 2016). These automated contracts can bring significant cost savings to organizations as manual administrative work becomes obsolete. By decreasing cost and increasing supply chain transparency; smart contracts have major implications to the future of SCM (Saberi et al., 2019). Furthermore, smart contracts can be used to ensure the fulfillment of sustainability requirements throughout the supply chain (Manupati et al., 2020). Smart contracts are discussed in the literature, but their effectiveness has not been evaluated in a concrete manner (Yli-Huumo et al., 2016).

Stored transactions are not limited to be strictly financial which improves the applicability of blockchain to other industries beyond the financial sector (Zyskind et al., 2015). According to Schmidt & Wagner (2019), blockchain can be used not only for transactions but also as a system to record, monitor and track all assets, both tangible and intangible, on a global scale. Consensus-based record validation removes the need for trusted intermediaries and not only reduces transaction costs but can also aid organizations in governance decisions in supply chain relations (Schmidt & Wagner, 2019).

As illustrated in Figure 2 below, all assets are assigned a unique identifier and compressed into a 64-character code called a hash when registered into a blockchain (Queiroz & Fosso Wamba, 2019). These unique identifiers can work as a proof of originality and ownership which provides a tremendous potential for existing IP management systems in art, health, science and governmental areas (Swan, 2015). Tangible assets on the other hand, can be anything from machinery to houses or any other physical asset. In the blockchain system, these assets are called smart properties and can be tracked, monitored, and exchanged on the blockchain (Swan, 2015).

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Figure 2. Illustration of block contents. Source: adapted from (Queiroz & Fosso Wamba,

2019)

2.1.3 Industrial applications of blockchain

In increasingly complex global supply chains, third parties collect massive amounts of data throughout the supply chain which increases the data security risk (Zyskind et al., 2015). Instead of maintaining sensitive data on centralized databases, blockchain can provide a secure solution for the increasing complexity. According to Zysking et al. (2015) the public concern related to user privacy is growing while more and more customized data is being collected by data-driven companies whose aim is to offer accurately personalized services. In the financial sector, the increasing popularity and applications of bitcoin has proved that decentralized personal data management systems increase auditability and sharing of secure data (Zyskind et al., 2015).

Schmidt and Wagner (2019) predict that just like how the internet changed the way we exchange information globally, blockchain will change the way we trust. By eliminating the need for human intervention, blockchain has the potential to eliminate the need for personal trust, both on an individual and organizational level. Thereby a system trust, which is based on consensus rules and in this case, on automated agreements in the form of smart contracts, could replace personal trust in a blockchain facilitated business environment (Schmidt & Wagner, 2019). According to Saberi et al. (2019), this change in trust would dramatically change the traditional buyer-supplier relationships. Trust-free

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environment would therefore shake the status quo and force current supply chain theories to be re-evaluated (Saberi et al., 2019).

Actors within the supply chain are profoundly reliant on their suppliers when it comes to the quality and the safety of their products, especially in food supply chains (Astill et al., 2019). For food supply chains, tracking information is required “from farm to fork”, regarding farming practices, storage, and transportation conditions (Astill et al., 2019). If there are any complications during the cold chain, it can lead to catastrophic consequences (Bumblauskas et al., 2020). Chipotle Mexican Grill’s implementation of blockchain in the aftermath of a food poisoning incident has been presented as an example for food supply chains. The Chipotle incident was caused by a complex supplier network and inefficient monitoring, as well as a lack of transparency and traceability within the supply chain (Casey & Wong, 2017; Saberi et al., 2019).

In addition to data security and trust, blockchain can also be used to prove the origin and authenticity of products (ElMessiry & ElMessiry, 2018). According to Venkatesh et al. (2020), blockchain technology has been implemented with track and trace applications in manufacturing and logistics. In production processes, this has aided in recognizing machinery malfunctions and defective raw materials (Venkatesh et al., 2020). The best-known cases presented in the literature include Walmart, Maersk, and other multinational corporations optimizing their operations with the help of blockchain (Kshetri, 2018; Kouhizadeh et al., 2021). Hence, blockchain technology could be the solution to the conundrum of complex supplier networks and set the foundation for SSCM (Kouhizadeh et al., 2021; Saberi et al., 2019; Venkatesh et al., 2020).

Study by Ko, Lee & Ryu (2018) determined that two aspects of blockchain have the most fundamental impact in manufacturing: real-time transparency and cost savings. Those aspects impact manufacturing firm’s profitability and competitiveness which in turn has a positive effect on their sustainability. Study by Ko et al. (2018) also compared large manufacturing firms to SMEs and displayed interesting findings for smaller firms. Typically, auditing and surveillance costs in manufacturing are relatively higher for smaller companies. Due to the cost savings gained by real-time transparency, SMEs can in fact narrow down the gap to their larger competitors (Ko et al., 2018).

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2.1.4 Blockchain’s connection to other technologies

Implementation of blockchain is interrelated to the ongoing development of other disruptive technologies such as the Internet of Things (IoT), artificial intelligence (AI), cloud computing and big data analytics (Astill et al., 2019; Kamble et al., 2020; Kshetri, 2018; Venkatesh et al., 2020). IoT can be defined as a network of devices connected to the internet, enabling communication between devices, as well as between devices and people (Astill et al., 2019). It has the capabilities to automatically collect information along the whole supply chain and minimize manual interaction with the data (Astill et al., 2019). Big data analytics refer to large amounts of data being collected and managed in order to recognize relevant information and optimize processes. In the consumer product industry, big data enhances demand forecasting and optimization of supply chain processes (Astill et al., 2019).

Together these disruptive technologies are part of the fourth industrial revolution titled as Industry 4.0 which according to Hofmann and Rüsch (2017) has potential to transform the way products are designed, manufactured, delivered, and paid for. Innovation and economic growth are driven by technological developments and the value of relevant data is expected to grow in the foreseeable future (Astill et al., 2019). In the so-called ‘Big Data era’, information is constantly collected and analyzed which in turn increases the need for a secure, decentralized database (Zyskind et al., 2015). According to Kamble et al. (2020), these emerging technologies help to manage demand-supply variations and support the decision making in supply chains which improves their overall performance. 2.2 Sustainable Supply Chain Management

Sustainability is a topic that gains momentum every year due to the constant reminder of our planet's environmental degradation as well as inequalities around the world (Kouhizadeh et al., 2021). Both private citizens and corporations can no longer neglect or be impartial to these facts (Linton et al., 2007). Both internal and external stakeholders pressure corporations to transition their practices to more sustainable procedures, which has led to companies no longer only being measured from their economic performance but also from an environmental and social perspective (Venkatesh et al., 2020).

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The most common definition used for sustainable development is the one set forth by the Brundtland Commission. Sustainable development is defined as "Meeting the needs and

aspirations of the present generation without compromising the ability of the future generation to meet their needs" (Brundtland, 1987, p. 292). The concept is built upon

three foundational blocks: economical, environmental, and social development. These blocks are interrelated and dependent on each other to fulfill sustainable growth (Brandenburg et al., 2014). The integration of these three blocks is often referred to as the triple bottom line concept (Carter & Rogers, 2008).

Figure 3. Three foundational blocks of sustainability. Source: (Carter & Rogers, 2008)

Figure 3 above visualizes the concept of the triple bottom line and how the three blocks correspond to each other. However, after scratching the concept's surface and going more in-depth into the topic, it becomes more complex and multi-dimensional. Sustainability can be applied at different scales such as countries, regions, single organizations, and supply chains (Seuring et al., 2008). Current literature highlights that social and environmental sustainability is becoming an important factor for customers when it comes to consumer decisions (Saberi et al., 2019; Sajjad et al., 2015; Tay et al., 2015).

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To reach the requirement of becoming a sustainable supply chain is not easy to achieve. As mentioned before, sustainability is a multi-dimensional goal that is demanding for an individual corporation to reach (Di Vaio & Varriale, 2020; Seuring et al., 2008). However, because the supply chain is derived from separate entities from suppliers to end customers, a sustainable supply chain demands efficient information and collaboration between the different actors, which is a daunting task for every type of supply chain (Seuring et al., 2008).

There are many definitions of SSCM. However, they all have the same foundational meaning. Thus, we have chosen to use Seuring et al. (p.1545, 2008) definition of SSCM: “sustainable supply chain management is the management of material and information

flows as well as cooperation among companies along the supply chain while taking goals from all three dimensions of sustainable development, i.e., economic, environmental, and social, and stakeholder requirements into account”. In correlation with Figure 3, the

vision of the SSCM is to create a chain that does not damage social and environmental systems in any shape or form and at the same time generates profit over an extended time. However, there are very few, if any, supply chains that can title themselves fully sustainable (Pagell & Wu, 2009).

2.2.2 Environmental aspect

The degradation of the environment is constantly one of the top global issues and is something that affects all levels of society. Hence, it has made it harder for companies to neglect this constant issue (Manupati et al., 2020). In theory of SSCM, the environmental aspect is to a large extent about the conservation of the environment that the supply chain is situated in. (Panigrahi et al., 2019). The goal is that the supply chain process should operate to a degree where the environment is unharmed by the activities (Panigrahi et al., 2019).

The environmental aspect often includes pollution, exploitation of natural resources, illegal harvest, waste management, and reverse logistics (Hastig & Sodhi, 2020; Panigrahi et al., 2019). However, the most significant motivator for increased environmental

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consciousness is government regulation regarding carbon footprint (Panigrahi et al., 2019). According to Carter et al. (2019), supply chain management activities account for 90 % of the impact on natural resources, including land, soil, and air. Additionally, 80% of the carbon emissions of a consumer product take place in the supply chain. This indicates companies cannot just take environmental responsibility for their own activities but also need to be aware of the supply chain impact (Manupati et al., 2020; Panigrahi et al., 2019).

2.2.3 Social aspect

Social responsibility covers issues surrounding working conditions and the environment, which can involve avoiding workforce exploitation, giving fair wages, having a safe and healthy environment, equal treatment, and freedom of association (Egels-Zanden, 2014; Saberi et al., 2019; Venkatesh et al., 2020). Social responsibility in the supply chain is centered around the health and welfare of people involved or affected by supply chain activities (Panigrahi et al., 2019). It is often upheld or controlled by buyers, supplier code of conducts, and regulations. Regulation is often one of the most robust incentives for upholding socially responsible practices (Venkatesh et al., 2020). However, because supply chains are often built upon geographically disjointed entities, the regulations may vary and not meet the same requirements set by the external stakeholders (Venkatesh et al., 2020).

According to Venkatesh et al. (2020), it is often not enough to barely set guidelines and standards for the supply chain to follow. There needs to be some kind of monitoring and auditing process to ensure that the policies are met. However, ensuring social responsibility within the supply chain becomes difficult to obtain because of the supply chain's complexity. Everything then boils down to trusting that the supply chain partners are honest with the data they store about their employees' welfare and their social-environmental impact (Venkatesh et al., 2020). Thus, there is a need to create more transparent and traceable supply chains to ensure that social practices are being followed, while removing the need for trust in the chain (Venkatesh et al., 2020).

2.2.4 Sustainable supply chain drivers and challenges

Firms can have different drivers and challenges for engagement in SSCM (Tay et al., 2015). They can be either internal and external factors or a combination of these two. The

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internal drivers can come from top management commitment of having a supportive company culture towards sustainability issues (Walker & Jones, 2012). According to Sajjad et al (2015), moving towards sustainable practices is not only motivated by a company's consciousness about their ecological or social impact on the surrounding environment but could also be driven by competitive advantage reasons. Prior research has shown that transiting to SSCM can sometimes increase economic performance and management of risk in the supply chain (Zhu & Sarkis, 2004).

The external drivers can come from a range of stakeholders (Tay et al., 2015). One of the most significant stakeholders is the customers, who have the final influence on the supply chain performance (Sajjad et al., 2015). This gives them the power to set significant pressure on the supply chain to move in any specific direction (Saberi et al., 2019). This sets pressure on companies to give accessible information about the origin of the products they sell. This not only puts sustainability demands on the selling company but also their suppliers both at a local and global level (Saberi et al., 2019). However, pressure can also be set by government policies and regulations, NGOs and competitors, and investors (Linton et al., 2007; Walker & Jones, 2012; Sajjad et al., 2015; Tay et al., 2015).

Transitioning to SSCM has a set of challenges that the supply chain actors have to overcome. According to Tay et al. (2015), there needs to be a distinction drawn between large and small companies when it comes to SSCM. The company's size is one of the most important features when it comes to engagement in sustainable practices, where bigger-sized companies are more open to taking part in green and social supply chain activities (Lee, 2008; Tay et al., 2015). According to Esfahbodi et al. (2016) this can be due to smaller firms' lack of internal resources, which in turn often makes them dependent on external actor's decisions.

Implementing sustainable supply chain management becomes more challenging due to the supply chain’s multi-leveled factors. There are a multitude of different actors at different stages and at remote locations (Venkatesh et al., 2020). Hence, applying sustainable practices through the whole supply chain demands a collective strategy, which needs to be facilitated by developed supply chain infrastructure (Sajjad et al., 2015).

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However, implementing this kind of system and process can be resource draining for companies and stop them from making the transition (Sajjad et al., 2015).

2.3 Blockchain in SSCM

Traditionally, supply chains have managed their information flow on centralized management systems, such as enterprise resource planning systems (Saberi et al., 2019). However, these centralized systems are vulnerable in the digital era where hacking, system errors and corruption problems propose a real data security threat (Venkatesh et al., 2020). As a solution to create secure, permanent and tamper-proof records, benefits of blockchain go beyond data security, and can be used to keep an honest, transparent data record of sustainable practices (Venkatesh et al., 2020). According to Kamble et al. (2020), efficient use of blockchain technology, along with other emerging technologies, improves product quality and safety; as well as meeting sustainability requirements. Existing literature suggests that by making transactions more transparent, blockchain enables many possibilities for supply chains to become more transparent as a result (Francisco & Swanson, 2018; Saberi et al., 2019). Francisco and Swanson (2018) underline that many products have a long history but many stages during the journey from sourcing to end-customer are blurred. As a decentralized trustless ledger, blockchain can provide the answer for sustainability issues experienced by companies that are sourcing materials from various places (Kamble et al., 2020). According to Kouhizadeh et al. (2021) to achieve the collective collaboration and coordination that the SSC demands, many supply chains are reliant on certificated sustainability information systems to store and audit suppliers’ activities. These systems are not always reliable though, as they are often voluntary databases, which can be used to only show the information the inputting company wants to show. This affects the credibility and the validity of the information being presented (Kouhizadeh et al., 2021).

The below Figure 4 illustrates the evolution of supply chains from the traditional linear chain to the modern blockchain-enabled supply network where automated smart contracts play a central role by authenticating the exchange of goods (Saberi et al., 2019). Prior research has shown that combining blockchain with IoT devices has tremendous potential across various industries: for example, IoT devices can execute tasks autonomously through smart contracts (Kshetri, 2018). Real-time information is available to all

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stakeholders and customers can gain access to relevant information that has been made available for them. According to Saberi et al. (2019), registrars and certifiers maintain the system trust and determine which actors are certified to see which piece of information. Standard-setting organizations can also access information on sustainable practices which in turn ensures the sustainability of blockchain-enabled supply chains (Saberi et al., 2019).

Figure 4. Evolution of supply chains. Source: adapted from (Saberi et al., 2019)

By providing transparent and immutable information for inspection, supply chains can fulfill the increased consumer demand for supply chain transparency (Francisco & Swanson, 2018). Guarantees of product quality and authenticity results in improved consumer trust which according to Francisco and Swanson (2018), has been done in various industries from wine to fine art and diamonds. For example, jewelry consumers want to ensure that a diamond they have purchased is authentic and sustainable, instead of being purchased from notoriously unethical markets of war-torn regions (Francisco &

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Swanson, 2018). According to Kshetri (2018), every physical product comes with a so-called “digital passport” which displays an auditable record of the whole journey the product has taken. All items are given a unique ID number which can be paired with existing technology, such as a QR (quick response) code or barcode, for complete traceability of products, packages, and containers (Kshetri, 2018).

2.3.1 Benefits of blockchain in SSCM

Table 1 below lists the main benefits of blockchain for supply chains, as discussed in current literature. Each benefit is followed by a brief description, as well as key references used throughout this thesis. From these benefits, transparency and traceability have been recognized as the most relevant benefits when it comes to SSCM, and environmental and social aspects of sustainability (Venkatesh et al., 2020). Therefore, these two benefits are discussed more in detail in this paper.

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18 Transparency

Transparency can be defined as a concept where specific information is accessible and apparent to specific stakeholders and external observers (Gardner et al., 2019). Supply chain transparency regards information being accessible to end-customers and other actors within the chain (Francisco and Swanson, 2018). However, having relevant and reliable information through the whole supply chain is difficult. Before a product arrives at the end-customers, it must go through an extensive network of actors and a lack of insight into the other actors’ operations can lead to complications for the supply chain performance, particularly when it comes to social and environmental issues (Bai & Sarkis, 2020; Venkatesh et al., 2020).

Blockchain can generate the necessary transparency even in multi-tier global supply chains, including various third-party service providers and retailers (Bai & Sarkis, 2020; Venkatesh et al., 2020). This can be attained through blockchain’s enablement of transactions of information (Wong et al., 2020). For example, when a new set of data transactions is being made, it is automatically updated into the blockchain system, and all the actors can examine the information. Allowing supply chain actors to get real-time transparency and prevent malicious behaviors from their peers (Ko et al., 2018). Through smart contracts, negotiated terms and conditions for social and environmental issues can be stored. When an actor breaches these agreements, they have to face the decided contractual penalty (Bai & Sarkis, 2020; Venkatesh et al., 2020). Having these kinds of securities in place hinders individual gain at the cost of the collective and creates an environment where trust can blossom, and supply chain transparency can increase (Bai & Sarkis, 2020).

Traceability

Traceability is often referred to as the ability to track specific historical events, locations, and different entity functions (Astill et al., 2019). The role of traceability with a supply chain context is to identify components and the chronological order of supply chain activities (Venkatesh et al., 2020). This can be through following the journey of a product and identifying the origin of the product's material (Ko et al., 2018). It helps supply chains detect inefficiencies in the supply chain from an optimization perspective, like machine breakdowns and defect materials (Venkatesh et al., 2020). Additionally, traceability can

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enhance customer’s confidence in the product, through being able to verify the product quality, and ethical impact (Bai & Sarkis, 2020). Especially in seafood supply chains, blockchain can ensure consumers that the food they are eating is authentic and ethical (Kshetri, 2018).

According to Kamble et al. (2020), blockchain improves traceability through information being stored into blocks with specific timestamps. Therefore, it becomes easier to backtrack through the supply chain to identify when a particular event occurred. In 2016 Walmart started to collaborate with IBM to explore the use of blockchain technology to improve product traceability. In one project, they wanted to investigate how long it would take to track all the steps of a mango’s journey from the harvest in Mexico to its sale in the store. With the current procedures they had in place, it would approximately take one week to track the mangoes. However, with the customized blockchain technology they were developing, it only took 2,2 seconds to trace back the mango's origin (Astill et al., 2019; Wong et al., 2020). By utilizing these attributes of blockchain, a product's social and environmental impact could quickly be confirmed and set a new standard for sustainable practices (Bai & Sarkis, 2020).

2.3.2 Blockchain in relation to the environment

An attribute of blockchain that companies see as beneficial for environmental transparency within the supply chain is traceability (Manupati et al., 2020). Historically, it has been difficult for firms to ensure and verify that their products are environmentally friendly (Saberi et al., 2019). However, the pressure set by environmental activities and consumers to have accessible product records has coerced companies to find ways to get more traceable supply chains (Manupati et al., 2020). Increasing environmental awareness and pressure for ethically produced goods by consumers is driving the change towards elevated supply chain transparency (Francisco and Swanson, 2018).

Blockchain technology has the attributes to enhance the transparency and traceability of a supply chain by facilitating distributed data sharing (Manupati et al., 2020). Hence, it ensures that the information shared is trustworthy and cannot be tampered with for individual benefits (Feng et al., 2020; Kshetri, 2018). Therefore, it has the potential to revolutionize supply chain management from a sustainability perspective (Manupati et al., 2020). According to Manupati et al. (2020), smart contracts can be implemented to

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ensure that sustainable agreements with the supply chain actors are updated automatically. This facilitates an environment where actors are accountable for their own actions and allows only reliable data to be shared. Additionally, a customized cryptocurrency could be implemented where the currency is converted into environmental data instead. The data transaction could then be connected to carbon emission and be triggered by smart contracts when emission preaches the agreed-upon emission ceiling set by the supply chain (Manupati et al., 2020).

2.3.3 Blockchain in relation to social responsibility

As mentioned before, one of the challenges with social responsibility in the supply chain is monitoring the supply chain partners and trusting that the information they present is trustworthy (Venkatesh et al., 2020). This is related to the lack of transparency that many supply chains face, as the limited insight into the other actors' practices makes it difficult to ensure a socially responsible chain (Bai & Sarkis, 2020). Hence, this is a complication that needs to be solved if supply chains want to prove that they are socially conscious (Saberi et al., 2019).

According to the literature, blockchain has the attributes of verifying social responsibility within a supply chain (Bumblauskas et al., 2020; Kouhizadeh et al., 2021; Saberi et al., 2019; Venkatesh et al., 2020). Through distributed data sharing, the information becomes more reliable and immutable (Venkatesh et al., 2020). According to Saberi et al. (2019), information cannot be edited without permission by an authorized party, which wards individuals, organizations, and governments from hampering the data. Blocking can also reduce criminal behavior and hold individuals and organizations accountable for their actions and misdeeds (Kouhizadeh et al., 2021). Therefore, it makes it easier to assure that human rights and fair working conditions are being met in the supply chain (Saberi et al., 2019).

Blockchain enables transparency even in multi-tier global supply chains which include various third-party service providers and retailers. By sharing information about social sustainability certificates and adequate working conditions in tamper-proof records throughout the supply chain, retailers can prove their sustainable practices to their customers (Venkatesh et al., 2020).

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Although the implementation of blockchain is on the rise, it still faces various adoption barriers (Saberi et al., 2019). Like other disruptive technologies, it needs to overcome several barriers and obstacles on its way to widespread adoption in supply chains (Rane et al., 2020; Kouhizadeh et al., 2021; Saberi at al., 2019). The Figure 5 below displays the current barriers for blockchain adoption in SSCM, divided into four categories according to Saberi et al. (2019): internal (intra-organizational level); supply chain (inter-organizational level); technical (systems related); and external. The findings by Kouhizadeh et al. (2021) suggest that supply chain and technical barriers are the most prevalent barriers among both academics and industry experts.

Figure 5. Current barriers of blockchain adoption in SSCM. Source: adapted from

(Saberi et al., 2019; Kouhizadeh et al., 2021)

Astill et al. (2019) emphasize that for blockchain to be implemented, return on investment is required to justify the change. An increase in transparency needs to be paired with an increase in financial revenue, otherwise it would not be a financially viable option. Venkatesh et al. (2020) investigated the costs associated with the implementation of blockchain in a Chinese manufacturing company. These costs involve hardware, software and other costs. Each company’s needs are individual which makes it hard to predict the exact amount of investment required. Regardless of the company, a fair amount of high-technological hardware, paired with advanced software is needed which presents an adoption barrier for blockchain (Venkatesh et al., 2020). In the long-term, however, by eliminating the intermediaries, blockchain implementation results in cost advantage by lowering the exchange and transaction costs (Venkatesh et al., 2020). In addition to cost,

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other internal barriers for blockchain are lack of knowledge, expertise, and managerial support, combined with organizational change resistance and hesitance to convert into disruptive technology (Saberi et al., 2019).

Inter-organizational barriers deal with lack of awareness and knowledge of both blockchain and sustainability (Saberi et al., 2019). Collaboration and coordination issues are common challenges when dealing with multiple third-party actors, who also share information disclosure policy issues when dealing with large amounts of sensitive data (Kouhizadeh et al., 2021). As a new disruptive technology, blockchain is faced with multiple technical barriers (Kouhizadeh et al., 2021; Saberi at al., 2019). Certain aspects like immutability, can be seen as both a benefit and a barrier during the early stages of this disruptive technology. Any incorrect information input would stay visible in the system indefinitely and can only be corrected by placing additional information into the blockchain, leaving permanent remarks on the company's practices (Kouhizadeh et al., 2021). Furthermore, companies can be hesitant when requested to share data regarding their sustainable practices (Schmidt & Wagner, 2019). These kinds of immutability challenges can significantly hinder the adoption willingness of companies (Schmidt & Wagner, 2019; Venkatesh et al., 2020). Technical barriers also include high costs in developing IT infrastructure, data security and computing power requirements (Kamble et al., 2020). External barriers include lack of established standards and governmental policies, market competition and future uncertainty, as well as lack of incentives and industrial involvement to implement blockchain (Kouhizadeh et al., 2021; Saberi at al., 2019).

2.4 Summary of frame of reference

The objective of the frame of reference was to gain greater insight into blockchain technology adoption in the context of SSCM. Figure 6 below is a theory summary model which clarifies how previously presented concepts are connected to the thesis. Current literature highlights that stakeholders are becoming sustainably conscious and consequently pressure companies and their supply chains to be more transparent with their environmental and social impact (Venkatesh et al., 2020). However, according to Seuring & Muller (2008), globalization makes supply chain networks more intricate and more challenging to get a holistic overview of all the processes. Hence, many supply

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chains need to be restructured or have new technological adoption to become more transparent.

Blockchain technology is constantly being developed to revolutionize SSCM through transparency and traceability of products. Consumers require transparent information of consumer products and the product’s journey from the source to the hands of the end-user. Immutable information stored in blockchain can be used in various industries to prove sustainable practices, both from a social and an environmental perspective.

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3. Methodology

This chapter explains the relationship between the selected methods for gathering data and the established research questions. It discusses possible data collection methods to answer the research questions and the thought process behind these decisions.

3.1 Research philosophy

Research is centered on the authors' philosophy in how new knowledge is developed and expressed in the research (Saunders & Lewis, 2012). Classifying the philosophy enables researchers to grasp the different concepts of truths and how knowledge development is related to the research (Saunders & Lewis, 2012). However, firstly two foundational concepts need to be examined to establish the philosophical approach, namely ontology and epistemology. The ontological position affects the researcher's assumptions about the nature of reality surrounding them (Easterby-Smith et al., 2018). In correlation to ontology, epistemology is about what the researcher knows and how they acquire knowledge from their assumptions of their reality (Easterby-Smith et al., 2018).

Researchers can take different degrees of positions within the ontology and epistemology spheres, depending on the purpose of the study (Easterby-Smith et al., 2018). The purpose of this thesis is to "analyze how blockchain technology can facilitate more transparent

sustainable practices". To be able to fulfill the purpose, we as authors of this study need

to become observers of different contexts where the subject can facilitate and not assume that there is one universal way to implement blockchain to contribute to more transparent sustainable practices, but instead, it depends on the context. Hence, the study has taken a relativist ontology view, together with a constructive epistemology view. According to Easterby-Smith et al. (2018), relativism means that there is not a single objective reality, but instead, the reality depends on the observer's perspective. Therefore, a truth perceived by a group of people does not exclude the existence of other truths.

In relation to relativism, constructionism centers around inquiring information from different perspectives and producing a theory that can be implemented into other contexts (Easterby-Smith et al., 2018). Therefore, to answer the study's purpose, knowledge must be gained both from theory and different respondents in how blockchain solutions relate

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to generating more transparent sustainable practices. Due to the study being a multi-case study where interviews are conducted with various respondents from different settings, we are not observing an objective reality but instead interpreting the reality of our respondents. The aim of this approach is to expand and modify the existing theory about blockchain adoption in SSCM (Smith et al., 2018). In accordance with Easterby-Smith et al. (2018), the information will be gathered from well-examined sources and compared with each other. To gain better insight in how blockchain can improve transparency and traceability from a sustainable perspective.

3.2 Research design

This thesis has taken a qualitative approach to investigate how blockchain can generate a more transparent supply chain from a social and environmental perspective. Deciding between doing qualitative or quantitative research depends on the research questions (Easterby-Smith et al., 2018). If a researcher is examining an issue that has an objective reality, and the researcher wants to find a conclusive answer to a question, a quantitative approach is the most suitable (Easterby-Smith et al., 2018). The objective of doing a quantitative study is to examine cause and effect in a relationship between different parameters, which leads to the answer to the questions becoming more binary, yes, or no (Easterby-Smith et al., 2018). Qualitative research is based upon gathering non-numeric data and trying to contextualize it to be able to answer the how and why behind this research (Easterby-Smith et al., 2018). The qualitative study's research question is often based around a subjective reality, which leads to a more exploratory study (Easterby-Smith et al., 2018).

The objective of this thesis is to analyze how blockchain technology can facilitate more transparent sustainable practices. We will analyze different views/perspectives on how blockchain can contribute to transparency and traceability. Taking a quantitative approach would be difficult because the findings of this study give insight into what kind of impact blockchain solutions can have in relation to SSCM and are based on respondents' opinions. Thus, presenting a universal answer to the purpose would be misleading.

Hence, this thesis will take an exploratory approach combined with a qualitative approach in accordance with the constructional positions to fulfill the purpose. An exploratory

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approach is particularly suitable for new phenomena such as blockchain where there is a need to explore general information about the topic to give better insight and understanding (Saunders & Lewis, 2012). The chosen philosophy of the study, where we want to gather a smaller sample of data from different perspectives, pushes the study towards a qualitative and exploratory approach (Easterby-Smith et al., 2018).

3.3 Research approach

In academic studies, there needs to be a distinction made in the relationship between theory and research (Bryman & Bell, 2015). The study can either follow a deductive, inductive, or abductive approach (Saunders & Lewis, 2012; Bryman & Bell, 2015). The deductive approach is the process of developing a new theory from existing research, which is subjected to empirical scrutiny through a set of propositions (Saunders & Lewis, 2012). Inductive is basically the opposite of deductive, instead of starting with existing theory, the processes start with an empirical gathering to develop a new theory (Saunders & Lewis, 2012). Finally, the abductive approach is a combination of the previous two. Where the researcher essentially moves back and forth between theory to data (deductive) and data to theory (inductive), where empirical findings and existing theory are combined in a non-linear manner (Saunders & Lewis, 2012).

As the existing theory about blockchain is still in its early stages, the objective of the study is to increase the understanding of blockchain adoption in SSCM. Hence the study needs to go back and forth between current theory and the empirical data to identify the gaps and expand the understanding of the research field (Saunders & Lewis, 2012; Kovács & Spens, 2005). The interactive aspect of the abductive approach has similarities and can be suitable with case studies (Kovács & Spens, 2005), which will be explored more in later sections.

Therefore, the thesis will take an abductive approach. Dubois and Gadde (2002) only reinforce our choice by stating that theory cannot be fully interpreted without empirical insight. The empirical gathering might result in the identification of unpredicted gaps in the current theoretical framework which can bring the need to modify or redirect the framework after these new findings.

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In a qualitative study, a multitude of well-established research strategies can be followed (Yin, 2015). Creswell (2014) highlights five well-established qualitative strategies for conducted research: narrative research, phenomenology, grounded theory, ethnographies, and case study. However, Saunders & Lewis (2012) state that labeling a strategy is rather inconsequential. Instead, researchers should focus their attention on generating a strategy that answers the researcher's questions and objectives.

This study employs a case study approach to increase our understanding of the topic (Yin, 2015). A case study is a strategy that enables researchers to examine a specific contemporary phenomenon/topic within a real life-context (Saunders & Lewis, 2012; Yin, 2015). Easterby-Smith et al. (2018) further describe a case study as investigating meticulously one or a small number of cases during a specific time.

According to Robson & McCartan (2016), multiple case studies regard empirical examination of a contemporary phenomenon within a specific context by utilizing various sources to contextualize the process. The method is considered as an extension of the case study design, where additional comparative elements are being added (Bryman & Bell, 2015). To avoid case studies criticisms, where general conclusions are being drawn from specific contexts (Bryman & Bell, 2015). We will be conscious of our respondents' particular environment and how that might affect their experience of the subject. Additionally, the thesis will have a clear structure of how data is processed to draw rational conclusions from the gathered data (Easterby-Smith et al., 2018). In combination with our abductive reasoning, the multiple case approach gives us foundation to do comparison between the different respondents and theory to a later stage contextualize a general conclusion and achieve triangulation.

3.5 Data collection 3.5.1 Literature review

Academic studies can include two types of literature reviews by using either systematic or traditional approaches. Literature review in this thesis was conducted by using a traditional approach which aims at presenting the most relevant information of a specific topic. Traditional literature reviews are defined by what the reviewers consider to be the

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most relevant or interesting sources, leaving out the aspects considered as less relevant (Easterby-Smith et al., 2018). Traditional approach enabled us to gather the most relevant sources of each topic in the frame of reference. After summarizing SSCM and blockchain separately, connections between these two topics were drawn to find the most important aspects of this emerging research area.

While there is a large amount of information available regarding SSCM, blockchain on the other hand, is a rather new topic with numerous research gaps. Potential industrial applications of blockchain are largely unstudied which underlines the meaningfulness of the traditional approach aimed at finding the most relevant information. Much of the blockchain literature revolves around bitcoin cryptocurrency, which is less meaningful when it comes to applications related to SSCM. Systematic approach would have likely involved too many articles regarding cryptocurrency and the financial sector. Therefore, it was highly meaningful for us to focus on blockchain’s applicability on SCM and sustainability. This approach enabled us to concentrate on finding the connection between these increasingly important topics.

To start the literature review, specific keywords were determined. Since blockchain technology is already an established technology, it does not have a synonym. Therefore, the keyword “blockchain” covered all relevant articles. Keywords related to bitcoin and cryptocurrencies were not required as they would have resulted in articles regarding the financial sector while blockchain covers more industrially applicable issues. To narrow down the search, a second set of keywords were added: “supply chain”. Searching for barely “blockchain” AND “supply chain” would have resulted in too many, potentially insignificant, articles that exclude sustainability. Purpose of this thesis is to draw connections between blockchain and sustainable supply chain management; thereby it was paramount to include sustainability in the keywords. To include both “sustainable” and “sustainability”, keyword with an asterisk was used: “sustainab*”. Since the beginning of the thesis process, some key benefits of blockchain were recognized as being constantly mentioned in existing literature. Therefore, keywords “transparency” OR “traceability” were added to narrow down the search to its final form to find the most relevant articles. The final form of search was: “blockchain” AND “supply chain” AND “sustainab*” AND “transparency” OR “traceability”.

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Literature search with the above keywords was conducted at Web of Science and resulted in 45 articles. Blockchain being a rather new topic, all articles were published during the last few years. This not only resulted in highly topical articles but also validated the growing significance of this research area. These 45 articles were sorted by the number of citations and articles with little to no citations were excluded. To exclude articles with low scientific quality, only peer-reviewed articles were chosen for further consideration. Based on these criteria, the articles were first scanned through to confirm their relevance for this study. After confirming the relevance of the topics, abstracts of the articles were read to gather a first impression of the literature. Articles were then read completely while highlighting the most relevant key points and findings. To help organize the findings, key points were listed in a separate document, with connections to each article they were being discussed. These key points helped us to determine the main benefits of blockchain which were discussed in detail in the frame of reference.

To find the most trustworthy information, the so-called “snowball approach” was used when deemed beneficial. Snowball approach means using references of references to identify the most relevant and cited literature (Easterby-Smith et al., 2018). With a new topic like blockchain, this approach proved to be a very valuable source of gathering information and developing knowledge. Furthermore, an additional search was conducted for the technological part of blockchain for the frame of reference. Simple search for “blockchain” brought forward articles of high relevance that were suitable for gathering general information about the technological aspects of blockchain. Similar search was also conducted for “sustainable supply chain” which gave us additional literature about SSCM. The snowball approach helped us to find the most relevant definitions for these topics.

3.5.2 Interviews

Gathering empirical data for a qualitative study generally implies interacting with a real-world context and the people surrounding them (Yin, 2015). Since we selected a qualitative approach for the study, we had to pick a qualitative strategy for collecting the data. Our main objective is to investigate the adoption of blockchain technology in SSCM. To capture this phenomenon, we need to apprehend the different perspectives of the people involved in the process. Since blockchain technology in SSCM is a rather new