From information asymmetry to transparency: blockchain-enabled digital transformation in manufacturing supply chains

Purpose Blockchain serves as a vital technology for digital transformation within manufacturing supply chains through its improved security and transparent tracking capabilities. Blockchain technology emerges as a promising solution for supply chain stakeholders who face ongoing information asymmetries and trust deficits amidst growing demands for sustainable practices and ethical sourcing from consumers and regulators. This paper aims to explore the potential of blockchain technology to improve transparency within supply chain operations, particularly in the Australian electrical manufacturing industry. Design/methodology/approach This research uses a multimethod research design encompassing three phases: Phase 1, a comprehensive literature review; Phase 2, semistructured interviews; and Phase 3, a case study to explore the application of distributed ledger technology for secure real-time supply chain activity monitoring. Findings The results suggest that integrating blockchain with Internet of Things technologies and sensor-based data leads to substantial improvements in data integrity while reducing fraud risks and enabling more efficient supply chain actor collaboration. Practical implications Manufacturing firms can benefit from our research findings, which provide actionable steps for using blockchain to achieve sustainable operations and improved efficiency. The authors offer strategic guidance for firms to develop supply chains that ensure transparency and resilience, along with alignment to environmental, social and governance goals. Originality/value The study advances digital supply chain transformation research by showing how blockchain serves as an essential technology to improve transparency and trust while boosting performance in manufacturing supply chains.