The role of blockchain technology in supply chain relationships: Balancing efficiency and relational dynamics

The increasing adoption of blockchain technology (BCT) is transforming operations and relational dynamics within agri-food supply chains. Despite a growing number of studies, the impact of BCT on supply chain relationships remains underexplored. This research identifies the salient elements of the link between BCT and relationships. It explores these empirically to understand the impact of BCT adoption and implementation on supply chain relationships in the agri-food industry, relying on social exchange theory and focusing on trust, formal information flow mechanisms, and quality of information flows and communication. This study undertakes a multiple qualitative case study analysis of seven Italian companies involved in the agri-food industry operating in the wine, beer, and dairy sectors who are considered pioneers of BCT adoption. The results indicate a positive impact of BCT on the automation of supply chain contracts and operational efficiency, on one hand, and the increased quality of relationships, on the other. Supply chain coordination is required for BCT to be effective. In highly concentrated sectors, the contractual power exerted by big players is a vital factor, while in more fragmented and dispersed industries the role of persuasion, relationships, and supply chain contracts are key. Three key insights emerge and are discussed. These concern: (i) the rethinking of the role of trust in supply chain relationships impacted by the adoption of BCT; (ii) the enhancement of information-sharing and flow mechanisms in supply chain relationships through the adoption of BCT; and (iii) the optimization of information flow quality and communication dynamics through the adoption of BCT. This study contributes to the existing literature by providing novel empirical evidence regarding the impact of BCT on relationships. It further contributes to the existing literature by analyzing the impact of blockchain applications on the upstream and downstream levels of the supply chain from a management perspective and by identifying the beneficial exchanges, norms, and principles that shape interactions when BCT is implemented. • BCT does not substitute trust in relationships but supports its development. • BCT facilitates overcoming the digital divide in agri-food supply chains. • BCT mirrors at the supply chain level the role of ERP at the firm level. • The strengthening of relationships through BCT increases the negotiation power of the supply chain.