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The mitigating role of blockchain-enabled supply chains during the COVID-19 pandemic

Yangchun Xiong (Management School, University of Liverpool, Liverpool, UK)
Hugo K.S. Lam (Management School, University of Liverpool, Liverpool, UK)
Ajay Kumar (Emlyon Business School, Ecully, France)
Eric W.T. Ngai (Department of Management and Marketing, The Hong Kong Polytechnic University, Hong Kong, China)
Chunyu Xiu (Management School, University of Liverpool, Liverpool, UK)
Xinyue Wang (Planning Statistic, China National Petroleum Corporation, Beijing, China)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 13 July 2021

Issue publication date: 12 October 2021

2697

Abstract

Purpose

Although there have been considerable discussions on the business value of adopting blockchain in supply chains, it is unclear whether such blockchain-enabled supply chains (BESCs) can help firms mitigate the negative impact resulting from the recent COVID-19 pandemic. This study aims to answer this important question.

Design/methodology/approach

The authors conduct an event study to quantify the financial effects of the COVID-19 pandemic and compare the differences in such effects between treatment firms that have adopted BESCs and matched control firms that have not adopted BESCs. The authors also perform a regression analysis to examine how the role of BESCs in mitigating COVID-19's negative impact varies across firms with different levels of supply chain leanness and complexity. The analysis is based on 88 treatment firms and 88 matched control firms, all of which are publicly listed on the US stock markets.

Findings

The test results suggest that although both the treatment and control firms are negatively affected by the COVID-19 pandemic, the effect is less negative for the treatment firms compared to the control firms, demonstrating the role of BESCs in mitigating the negative impact caused by the COVID-19 pandemic. Moreover, the mitigating role of BESCs is more pronounced for firms with lean and complex supply chains.

Originality/value

This study is among the first to provide empirical evidence on the mitigating role of BESCs during the COVID-19 pandemic, highlighting the importance of adopting blockchain in supply chains with high uncertainties and disruption risks.

Keywords

Acknowledgements

The authors thank the Guest Editors, especially Prof. Samuel Fosso Wamba, and three anonymous reviewers for their insightful comments and useful suggestions, which help improve the quality of this paper. Lam acknowledges the support provided by the British Academy through the BA/Leverhulme Small Research Grant (SRG20\201061).

Citation

Xiong, Y., Lam, H.K.S., Kumar, A., Ngai, E.W.T., Xiu, C. and Wang, X. (2021), "The mitigating role of blockchain-enabled supply chains during the COVID-19 pandemic", International Journal of Operations & Production Management, Vol. 41 No. 9, pp. 1495-1521. https://doi.org/10.1108/IJOPM-12-2020-0901

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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