Blockchain adoption and pricing strategies in cross-border e-commerce supply chains considering competition and consumer trust

Cross-border e-commerce has shifted product sales from traditional offline retail to a dual-channel model combining an offline retailer and a cross-border e-commerce platform, intensifying competition between channels and raising issues of incomplete consumer trust in product quality. We develop a game model where an overseas manufacturer distributes products through both channels while competing with a competitive manufacturer. With varying consumer trust in product quality across multiple channels, we investigate the overseas manufacturer’s blockchain adoption strategy and the value of blockchain. First, we find that when the overseas manufacturer’s combined tax and shipping cost is high, blockchain adoption depends on a low blockchain cost. Otherwise, a moderate blockchain cost is necessary. Second, the offline retailer benefits from blockchain if and only if there is a high channel quality variation level, a high blockchain cost, or a low overseas manufacturer’s combined tax and shipping cost, while the competitive manufacturer benefits if and only if the channel quality variation level is low and either the blockchain cost is high or the overseas manufacturer’s combined tax and shipping cost is low. Finally, rising blockchain cost decreases the value of blockchain for the overseas manufacturer yet enhances it for the offline retailer and the competitive manufacturer. Interestingly, as the product quality variation level decreases, the value of blockchain for an offline retailer reduces under a high platform commission rate but increases otherwise. Our analysis provides insights into when the overseas manufacturer should adopt blockchain and the value of blockchain considering competition and consumer trust.