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Unleashing the role of blockchain technology and government support in green supply

Umar Muhammad, Yu Zhang, Muhammad Zikri, Khan Syed Abdul Rehman

LogForum

2023

Vol. 19, no. 2

195--209

Background: With the advent of the technological revolution, digitalization and automation is expected to restructure the landscape of manufacturing operations. Blockchain technology (BCT) is likely to foster information sharing and transparency and facilitate collaboration on green issues in supply chain among firms. This quantitative research investigates the role of BCT in Green Supply Chain Management (GSCM) practices and its’ effect on various performances, including economic and social performance. Method: The data was gathered from 223 firms by utilizing a survey questionnaire, and PLS-SEM was employed to analyze the hypotheses. Results: The findings showed that BCT has a key role in the implementation of GSCM practices (comprising green purchasing and green manufacturing). The outcomes also elucidated that green manufacturing is positively associated with economic and social performance. Whereas, green purchasing is negatively correlated with economic performance and has an insignificant effect on social performance. Moreover, government support (GS) moderates the link between BCT and GSCM practices (including green purchasing and green manufacturing). Conclusion: This research provided ample understanding about the role of BCT in implementing GSCM practices. The findings suggested that government bodies need to provide interest free loans and tax exemption to effectively implement GSCM practices.