Blockchain adoption for enhancing value chain governance

Purpose This research aims to investigate the defined features of blockchains for value chain governance (VCG) since the technology has a specific advantage in promoting digital governance in agribusiness. This research pursues the following objectives: (1) to apply a descriptive explanation by developing a transparent coffee trading model and (2) to investigate the topic using empirical evidence. Design/methodology/approach This research presents a model and elucidates the advancement of digital VCG through continuous dialogue among existing literature and empirical evidence. To comprehensively describe the subject, it selected the case of ALKO Kopi Sumatra, a blockchain-based coffee commodity in Indonesia. The case study performed multiple units of analysis to produce robust findings. The research employed a qualitative approach to examine the value chain actors, illustrating how blockchains enhance the technology’s VCG. Findings Blockchains facilitate networks to reduce asymmetric information and promote VCG, which comprises information complexity, information codification and supplier capabilities. Furthermore, the research found a pattern in which chronological features were dominant in each layer. At the same time, other blockchain features work powerfully and differently in each of these layers. This depiction is presented in the assessment using the developed model. The research also indicates that adopting blockchain technology enhances efficiency by concurrently implementing operational and governance endeavors. Research limitations/implications This model can be used as a handbook to assess the usage of blockchains in VCG. At the same time, it can function as discussion material for applying digital governance, requiring references in its implementation. The study underscores better business reporting and transparency within more suited and contextual blockchain technology. This research used a single case study that explored the rich and contextual findings of blockchain-based digital governance. Originality/value This paper presents an empirical study on asymmetric information using blockchains in the Indonesian agri-food sector. Its novelty lies in the fact that it expounds on a model developed by extracting blockchain features to promote VCG. In addition, it solidifies the topics discussed and extrapolates the topic of digital governance in agribusiness.