Work

Synergistic Mechanisms of Blockchain Adoption and Government Subsidies in Contract Farming Supply Chain Systems: A Multi-Stage Stackelberg Game Approach

Year: 2026

Type: article

Abstract: Blockchain technology can enhance traceability and trust in contract farming supply chains, yet high implementation costs deter adoption by supply chain participants. This study examines the synergistic mechanisms between blockchain adoption strategies and government subsidy policies. We develop a multi-stage Stackelberg game model involving an agricultural enterprise, an e-commerce platform, and a government, and comparatively analyze six decision-making scenarios across non-subsidy, unilateral subsidy, and full-chain subsidy settings. Three key findings emerge. First, blockchain investment has a cost–effect threshold below which consumer traceability preferences do not translate into profit gains. Second, well-designed subsidies overcome investment inertia and yield Pareto improvements in both profits and social welfare, with the full-chain subsidy model (Model BG) maximizing social welfare; however, subsidies exhibit distinct efficiency boundaries, and over-subsidization causes resource misallocation. Third, both supply chain parties tend to free-ride on the other’s investment, creating strategic conflicts that necessitate differentiated subsidy mechanisms tailored to specific dominance structures. These findings provide policy guidance for facilitating agricultural digital transformation and enhancing supply chain coordination.

Source: Systems

DOI: 10.3390/systems14020208

Authors: Hui Xia, Jianxing Zhao, Pei Liu, Yulin Zhang

Institution: Shandong University

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, Zero hunger, Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $2,896