Reducing supply chain uncertainty via blockchain: an affordance and transaction cost perspective

Purpose This study examines how blockchain technology supports uncertainty reduction and collaboration in supply chains, thereby improving perceived business process performance. Drawing on affordance theory and transaction cost theory, we investigate how transparency and traceability affordances reduce environmental and partner-related uncertainties and facilitate supply chain collaboration. Design/methodology/approach We collected data from 297 supply chain managers in China. We used partial least squares structural equation modeling (PLS-SEM) to test the proposed relationships among blockchain affordances, uncertainty reduction, collaboration and performance outcomes. Findings The results show that the traceability affordance significantly reduces all types of uncertainty, while the transparency affordance indirectly contributes to uncertainty reduction through traceability. Reduced uncertainty strengthens supply chain collaboration, which in turn improves perceived business process performance. Research limitations/implications This study identifies uncertainty reduction as a key mechanism linking blockchain affordances to supply chain collaboration and perceived business process performance. As the study focuses primarily on uncertainty within transaction cost theory, future research could examine other transaction characteristics and contextual conditions that shape blockchain affordances and their consequences. Practical implications Managers should establish supply chain transparency while prioritizing traceability for high-risk products and suppliers. Blockchain-enabled audit trails can support supplier evaluation, transaction verification and contract monitoring, providing a stronger informational basis for interorganizational collaboration. Originality/value This study explains how blockchain affordances translate into collaborative and performance outcomes through uncertainty reduction. The findings further distinguish the roles of transparency and traceability in this process, providing a more nuanced understanding of how blockchain creates value in supply chain relationships.