Work

Blockchain adoption and consumer privacy concerns in a platform supply chain with manufacturer competition

Year: 2025

Type: article

Abstract: The traceability feature of blockchain technology can enhance product quality and safety, yet it also raises potential risks regarding the leakage of consumer privacy data. This study builds a game model to investigate the introduction of blockchain technology strategies by competing manufacturers and their impacts on supply chain performance. The results show that consumer preference for blockchain technology promotes the introduction of such technology by manufacturers, while consumer privacy concerns inhibit the introduction of such technology. In addition, when consumer privacy concerns are at a low level, the introduction of blockchain technology boosts profits for both manufacturers and the platform. By adjusting the value of consumer preference, we investigate whether or not consumers can tolerate a greater degree of risk of privacy breaches, and whether or not manufacturers should expand the scope of the introduction of blockchain technology strategies. Counterintuitively, the manufacturer’s optimal strategy is not related to competitors’ decisions, but only to consumer privacy concerns and the cost of blockchain technology. Finally, we explore the impact of blockchain technology on consumer surplus and social welfare.

Source: RAIRO - Operations Research

DOI: 10.1051/ro/2025071

Authors: Jing Yu, Xiaoxin Cui, Chi Zhou

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Responsible consumption and production

Open Access status: diamond

Funders: National Natural Science Foundation of China, Jilin Office of Philosophy and Social Science, Humanities and Social Science Fund of Ministry of Education of China

Awards: G653565777, G8858442696