Blockchain in Tea SC

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Technological Forecasting & Social Change 173 (2021) 121163

Contents lists available at ScienceDirect

Technological Forecasting & Social Change


journal homepage: www.elsevier.com/locate/techfore

The impact of blockchain technology on the tea supply chain and its
sustainable performance
Tripti Paul a, Sandeep Mondal a, Nazrul Islam b, *, Sandip Rakshit a
a
Indian Institute of Technology (Indian School of Mines), Dhanbad, India
b
Department of Science, Innovation, Technology and Entrepreneurship, University of Exeter Business School, England, UK

A R T I C L E I N F O A B S T R A C T

Keywords: Blockchain technology (BCT) has recently attracted interest from academics and practitioners. However, little is
Blockchain technology known about the benefits and impact of BCT on the tea supply chain and its sustainable performance. To bridge
Tea supply chain this gap, this study extends the resource-based view (RBV) and network theory (NT) by integrating BCT into the
Resource-based view
tea supply chain. We develop a conceptual model of a BCT-driven tea supply chain, which we analyse using a
Network theory
Sustainable performance
partial least squares regression-based structural equation modelling method with data collected from 305 experts
in India. The findings show that the use of BCT has a significant positive effect on the tea supply chain; in
particular, transparency and reliability are shown as the sustainable performance parameters. The imple­
mentation of BCT is a progressive paradigm shift that encourages actors to change their attitudes and become
more competent in the tea sector. This study is the first report on integrating BCT into supply chains, contributing
to the scant literature on this subject. Furthermore, our conceptual framework could help develop a more sus­
tainable supply chain for the global tea industry.

1. Introduction Proof-of-work is a fraud-prevention tool of BCT that ensures security;


this mechanism makes it difficult to tamper with blocks. Because of this
Supply chains have traditionally used centralised management sys­ security measure, independent data processors cannot mislead the sys­
tems, such as enterprise resource planning systems, to handle their in­ tem about a transaction (Nakamoto, 2008). Blockchains also use a
formation flow (Majeed and Rupasinghe, 2017). Errors, hacking, and peer-to-peer network that anyone could join, rather than relying on a
corruption are all risks with centralised systems (Chopra and Meindl, central authority to manage the chain. When a user joins this network,
2014). These concerns can be resolved using blockchain technology they receive a complete copy of the blockchain. When someone creates a
(BCT). A blockchain is a distributed database of immutable digital re­ new block, it is distributed along the whole network (Johnson, 2017). To
cords maintained by a network of nodes, which are not owned by any ensure that the block has not been tampered with, all nodes (users) in
single individual (Yoffie and Woo, 2017). Immutability in the context of the block must verify it. When everything is confirmed, each node adds
the blockchain refers to the fact that once something has been entered this block to the network’s ledger (Pan et al., 2016). By this point, they
into the blockchain, it cannot be changed. Because the blockchain is a have reached an agreement on which blocks are genuine and which are
linked list with information and a hash pointer to the previous block, it not. The consensus is produced by all the network’s nodes (users), which
forms a chain. This technique is what makes blockchains so precise and ensures traceability among the nodes (Breidbach and Tana, 2021).
innovative (Larios-Hernández, 2017; Islam et al., 2021). Cryptographic In a globalised market, supply chain managers and participants often
concepts are used to protect and connect each of these data blocks. The aspire to create a more efficient and responsive global supply chain. Due
method has the advantage of making it extremely difficult to modify to its unique characteristics of immutability, data integrity, provenance,
data after it has been registered in a blockchain. The entire process of and conclusiveness, many companies aspire to incorporate BCT into
validating transactions and adding blocks is distributed, so that no their business models (Centobelli et al., 2021). BCT can help improve
central control authority exists (Venkatesh et al., 2020). In addition, BCT trust within the supply chain network (Yeoh, 2017). It can also help
has advanced procedures to counter cheating (e.g., double-spending). deliver services and products on time, since it also includes global-level

* Corresponding author.
E-mail address: [email protected] (N. Islam).

https://doi.org/10.1016/j.techfore.2021.121163
Received 29 March 2021; Received in revised form 22 August 2021; Accepted 24 August 2021
Available online 10 September 2021
0040-1625/© 2021 Elsevier Inc. All rights reserved.
T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

transactions, process disintermediation, and decentralisation among influence the OTSC integration? 2) How can the BCT improve the
various players (Park et al., 2020). Therefore, BCT can minimise un­ OTSC’s sustainable performance? We take the following steps to answer
certainties in supply and demand to increase supply chain efficiency the research questions. (i) We undertake a comprehensive literature
(Marsal-Llacuna, 2018). BCT adoption can also boost knowledge among review of prior research related to BCT and supply chains. (ii) We adopt
stakeholders in the supply chain (Tsolakis et al., 2020). The applications a mixed-method approach: we use focus group discussions and in­
of blockchain in the supply chain are varied: it can be used to classify the terviews for qualitative data collection, and questionnaire survey for
players carrying out any action, and it allows the results and efficiency of quantitative data collection. (iii) Finally, we propose and empirically
the supply chain processes to be measured effectively (Lee and Pil­ test research hypotheses for conceptualising a BCT-driven OTSC process.
kington, 2017). Once the information for input monitoring is in a The key contributions of the study are fourfold. 1) A significant
blockchain ledger, it is immutable. Each function in the chain can be contribution is demonstrating how adopting BCT can improve trans­
monitored, such as the origin of the raw material, the production, parency and reliability, and thereby improve the supply chain perfor­
shipments, their progress, and the deliveries along the way (Acquaye mance. 2) This study extends RBV and NT by adapting BCT to the supply
et al., 2014). The supply chain includes several different governance chain sustainable performance context, thus adding to the relatively
policies for each stakeholder (Pereira et al., 2019). It is hard to follow scant literature. 3) The study responds to the call for more research on
one specific organisation’s policy consistently. The challenge for BCT-driven supply chain management in various fields. 4) The main
governance is to create consensus on a particular transaction by building contribution of this work is the BCT-driven OTSC model, which is
trust between the different parties in the supply chain network. Doing so applicable in various other supply chain contexts. Therefore, the target
significantly increases traceability and transparency (Aung and Chang, audience of this paper is professionals involved in various supply chains,
2014), ensuring the genuineness and legality of the product (Singh and as well as researchers in the supply chain field.
Teng, 2016). The article is structured as follows. The literature review is presented
An examination of the extant literature shows that studies on BCT in the second section. The third section addresses the role of BCT in the
have focused on technology acceptance. Studies on the impacts of BCTs OTSC process, and the fourth section presents the development of
on supply chain sustainability are underrepresented (Pólvora et al., research models and hypotheses. The methodology is discussed in the
2020). This paper aims to narrow the knowledge gap by developing a fifth section. The sixth section provides the data analysis and results. The
system architecture that integrates BCT to improve traceability in sus­ seventh section is the discussion, and the eighth section contains the
tainable performance of supply chains (Kimani et al., 2020). For conclusions, implications, limitations, and future research directions.
example, there is a dearth of theory-driven investigations in the context
of BCT, and no one has attempted to measure the effect of BTC on sus­ 2. Literature review
tainable performance. The organic tea supply chain (OTSC) is consid­
ered as a case in this study (Yin, 2014). The OTSC is chosen for the 2.1. Transparency and reliability in the supply chain
following reasons. First, it has a composite value chain comprising
small-scale tea growers and tea plucking labourers on the lower end; Supply chain transparency and reliability require knowledge of the
large plantations, tea processing factories, and brokers on the middle identity, location, and status of supply chain transiting entities, captured
end; and brands in the upper end (Biggs et al., 2018). Furthermore, an in timely event messages, along with the scheduled and actual dates/
entire supply chain of transport, distributors, and retailers exists to times for these events (Francis, 2008). Traditional centralisation of the
deliver this vital product to consumers worldwide (Kadavil, 2005). supply chains has restricted the opportunities for some stakeholders by
Second, only tea leaves from certified-organic tea gardens are selected generating knowledge asymmetry (Treiblmaier, 2018), usually favour­
for this supply chain. Tea growers must have a licence for their organic ing larger organisations or organisations implementing IT systems. This
tea garden to gain a premium edge. To obtain a licence, they must pay reduces the efficiency of efficiency of the supply chain (Michalski et al.,
considerable registration fees every year, including an application fee, a 2018). Effective supply chains allow managers to process the enormous
site inspection fee, and an annual certification fee (Paul and Sandeep, amount of information needed to make decisions (Williams et al., 2013).
2021). Often, domestic and foreign certifications are not mutually rec­ Therefore, supply chain professionals consider transparency and reli­
ognised, and organic tea gardens have to apply for two different certif­ ability (Kaipia and Hartiala, 2006) to significantly improve
icates to sell their organic tea in both domestic and foreign markets. inter-company cooperation, facilitating convergence between levels, up
Therefore, transparency and traceability are fundamental challenges in to and including the client (Schoenherr and Swink, 2012), improving
this supply chain process (Hm et al., 2017). Third, the organic tea in­ confidence (Johnson et al., 2013), and increasing productivity (Bartlett
dustry can be modernised through changes in the operation process to et al., 2007). Transparency and reliability thus promote supply chain
improve transparency and overall managerial excellence. Possible im­ intervention (Delen et al., 2009) and influence decision-making
provements include quality improvement, cost-effectiveness, supply (Christopher and Lee, 2004).
chain optimisation, and new export market identification (Roy, 2011). Digital transparency increased in the early 2000s to include addi­
BCT adoption is one of the most promising solutions for optimising tional functions such as product and distribution management by en­
supply chains (Francisco et al., 2018; Venkatesh et al., 2020). Forth, very terprise resource planning (ERP) (G. Parry and Graves, 2008), enterprise
little research is being done to resolve the issues related to the tradi­ resource management, and customer resource management (Chuang
tional tea supply chain (Wijesinha and Hirimuthugodage, 1999; Kus­ and Shaw, 2008; Lambert and Schwieterman, 2012). The relationship
tanti and Widiyanti, 2007; Mansingh and Johnson, 2012; Biggs et al., between physical objects and the digital world is essential for the use of
2018; Lowe et al., 2020). In particular, no prior research has considered advance technologies. Because of their low cost and simplicity, barcodes
an implementation of BCT in the OTSC. have become popular (Apiyo and Kiarie, 2018). Radio frequency iden­
This study investigates the impact of BCT on the sustainable per­ tification (RFID) tagging of products, while more expensive, can also
formance of the OTSC in the Indian tea industry. Structural equation provide organisations with real-time data at the individual product item
modelling (SEM) is used to test non-observable and observable BCT- level (Wang et al., 2017).
driven OTSC constructs. BCT primarily addresses questions about how The transparency of the movement of materials between all supply
to restructure the OTSC to improve sustainability (Casado-Vara et al., chain members has improved, and as has information exchange (Faw­
2018), while questions about what is required to maintain such systems cett et al., 2012; Pereira et al., 2019). The Internet of Things has been
are addressed using the theories of the resource-based view (RBV) (Yang conceived to link devices, as technology has evolved sufficiently to allow
and Lirn, 2017) and network theory (NT) (Treiblmaier, 2018). We greater transparency of processes along the entire supply chain,
consider two research questions: 1) What characteristics of BCT can reducing human error (Majeed and Rupasinghe, 2017; Parry et al.,

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

2016). There is a demand for technologies that allow stakeholders to see In a blockchain, the entire process of validating transactions and
the complexities of supply chain processes, rather than merely tracing adding blocks is entirely distributed, so that no central control authority
where and when a process took place; this suggests that supply chains exists. BCT uses advanced procedures to counter cheating (e.g., double-
are increasingly embracing reliability. Since the most challenging as­ spending); hence, it is also claimed that the BCT leads to trustless
pects of the OTSC are the raw materials used (sourcing organic tea consensus (Venkatesh et al., 2020). Due to its unique characteristics of
leaves), the processes used, and the individuals involved (tea growers, immutability, data integrity, provenance, finality, and the distributed
made-tea manufacturers, made-tea brokers, branding companies, ex­ ledger, many companies aspire to incorporate BCT into their current
porters, etc.) (Gold et al., 2015), visibility is more helpful than trace­ business model. Because of its exceptional properties (such as trustless,
ability. In a traceable supply chain, administrators are still unable to see immutable, and decentralized), BCT-based bitcoin is commonly
what is done, by whom it is done, and what the implications are at each accepted in financial transactions (White et al., 2020). In the supply
node (Abeyratne and Monfared, 2016). Traceability does not offer chain, BCT could be used to eradicate fraud and ensure productive
managers actionable knowledge (Parry et al., 2016). Therefore, to create transactions (Lansiti et al., 2017; Su et al., 2020). By reducing the need
a fairer, healthier, and more sustainable supply chain for every stock­ for a third party, BCT helps carry out quick transactions involving in­
holder, including workers, farmers, and the environment transparency is formation, products, and money at reduced transaction costs. That
needed. BCT can provide transparency for OTSC. contributes to improving trust within the supply chain network.
Through BCT, funds can also be moved from payer to payee anywhere in
2.2. The resource-based view (RBV) and network theory (NT) in the the world without a banking system (Yeoh, 2017; White et al., 2020).
context of supply chains In the supply chain, a BCT can be used to classify the players carrying
out any action. The BCT allows the results and efficiency of the supply
The RBV (Porter, 1980) postulates only a subset of an organisation’s chain processes to be measured validly and effectively. Once the infor­
resources produces a competitive advantage, and an even smaller subset mation for input monitoring is in a blockchain ledger, it is immutable.
leads in the long term to excellent performance. Only a few papers have Each process in the chain can be monitored, including the origin of the
applied RBV to the field of supply chains, and information about the raw material, the production, shipments, their progress, and the de­
usefulness of this theory and closely related principles (such as the liveries along the way (Acquaye et al., 2014; Schlecht et al., 2021).
resource–advantage theory) for supply chains is scarce. More recent Despite the growing interest in supply chain sustainability research
studies have explored topics such as the effect on capacity utilisation of (Neri et al., 2021) and in attempts to implement blockchains in opera­
the organisation’s resources and capabilities; the role of business tion (Pólvora et al., 2020), the understanding of BCT applications in
knowledge in creating an advantageous position for transport providers; supply chain sustainability remains limited. First, studies on BCT have
the achievement of closed-loop supply chain designs; and the anteced­ largely focused on acceptance from a technology perspective, leaving
ents of supply chain information integration (Yang and Lirn, 2017). out other aspects of the sustainable performance of the supply chain.
NT attempts to understand inter-organisational interaction com­ Second, none of the research has focused on the OTSC or on the
plexities by concentrating on personal relationships between the parties implementation of blockchain technology in it.
and building mutual trust through cooperative relationships and ex­ This study intends to bridge the research gap by creating a system
change processes (Treiblmaier, 2018). Organisations have to create re­ architecture incorporating BCT for greater supply chain traceability and
lationships to access external resources. They generate large-scale sustainability. The research makes significant contributions by intro­
networks, which are both stable and evolving. Two forms of interaction ducing BCT into the sustainable performance of the supply chain, with
help secure ties within the business network: exchange processes (social, the OTSC in mind.
business, and information) and adaptation processes (products, output,
and routines). Many supply chain topics have integrated important as­ 3. The proposed blockchain-driven organic tea supply chain
pects of NT, including the development of joint venture formations, model
network centrality antecedents in an environmental supply chain
initiative, the operation of strategic networks and alliances, and the The complexity and risk of the OTSC require quick responses.
comparison of networked and non-networked software industry com­ Blockchains could be well suited to providing the necessary trans­
panies (Carnovale et al., 2014; Wichmann et al., 2015). parency (Ringsberg, 2014). The growing customer demand for origin
Thus, when it comes to understanding and investigating real-world product information is a key driver of blockchain use to ensure the
supply chain phenomena, the theories offer different kinds of insight. reliability of organic supply chains (Casado-Vara et al., 2018).
Combining them for methodological plurality allows for a more detailed Consumers are now deeply involved in food and beverage processing
investigation of this multifaceted research subject than would be (Duffy et al., 2005). Agriculture adulteration is a major source of
possible with a single theory (Halldorsson et al., 2015). concern because organic cultivation is not entirely transparent to con­
sumers. Furthermore, tracking all activities within this supply chain is
2.3. Blockchain technology in the context of supply chains challenging, as global OTSCs are dynamic and include a wide range of
stakeholders, each of whom plays a unique role in the production and
The BCT is a digital decentralised distributed ledger in which supply of organic tea. The OTSC is becoming more complex over time,
transactions are registered in chronological order to provide transparent and the importance of transparency and reliability in organic tea pro­
and immutable information (Lansiti et al., 2017; Islam et al., 2020). In a duction is increasing. A general diagram of how a traditional OTSC
globalised market, supply chain managers often aspire to create a more could be transformed into a blockchain-driven OTSC is shown in Fig. 1.
efficient and responsive global supply chain by organising all supply In a blockchain-driven OTSC, each product would have a digital
chain participants using a new technology such as BCT. Adopting BCT blockchain presence, and the product profile would be directly acces­
could boost the flow of knowledge among stakeholders in the supply sible to all local stakeholders (Fig. 1). Security measures can be taken so
chain. This would minimise uncertainties in supply and demand, that only individuals with the correct digital keys can access a product,
boosting supply chain efficiency. Each supply chain member’s role is restricting access. A wide range of information can be collected,
critical in integrating the supply chain with BCT (Shen et al., 2018; including the product status, the product type, and the standards to be
Centobelli et al., 2020). A combination of the supply chain and BCT implemented for an organic product. An information tag attached to a
optimises supply chain activities, allowing knowledge exchange among product acts as an identifier, linking the physical product to its virtual
the stakeholders. Sharing of transactional and strategic information identity in the blockchain. Before a product is transferred (or sold) to
strengthens supply chain processes (Kopyto et al. 2020). another player, all players can sign a digital contract to authenticate the

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

Fig. 1. The traditional OTSC vs. a hypothetical BCT-driven OTSC model.

exchange. They must afterwards conform to the smart contract re­ verifiable updates.
quirements. If both parties fulfil the contractual responsibilities and The transparency and reliability of blockchains can help transfer
processes, transaction information is updated in the blockchain ledger. materials and information across the supply chain more efficiently,
When a modification is initiated, the BCT-integrated device automati­ using automated governance criteria. Their widespread adoption could
cally updates the data transaction records (Abeyratne and Monfared, lead to a broad shift from an economy of durable manufacturing, com­
2016). modities, and products to an economy of knowledge and customisation.
Critical product information can be supplied and highlighted by the Customers could also monitor certain aspects of specific products
blockchain technology. In the case of organic tea, the area of the tea (certified organic tea, in our case), which would improve their confi­
producing region, the tea variety, its quality, quantity, status/location dence in the products (Kopyto et al., 2020; Schlecht et al., 2021).
(where it is currently), and ownership are all included in the information Smart contracts can help record the interactions between the stake­
(who deals with the distribution network at any given stage). In this holders involved in the system as written rules stored in the blockchain.
way, the blockchain eliminates the need for a trustworthy central Smart contracts affect the exchange of network data between partici­
organisation to operate and maintain the system. It enables consumers pants in the supply chain and ensure the continuous improvement of the
to inspect the uninterrupted chain of custody and transactions, from raw processes (Kumar et al., 2020). For instance, certifiers and standards
materials (green tea leaves picked from the organic gardens) to final bodies can digitally view participant profiles and check the authenticity
products (certified organic tea). As transactions occur, they are recorded of their organic tea. Beyond product distribution and governance issues,
in ledgers using different aspects of blockchain information with this kind of framework and knowledge has enormous potential (Tsolakis

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

et al., 2020) for OTSC design with real-time consequences. transparency of the OTSC. In the real world, budget and target spending
Blockchain-based procedures are still open to interpretation and is usually accompanied by uncertainty in the allocation of capital. The
adaptation in the supply chain context (Marsal-Llacuna, 2018). In allocation model was developed by combining the efficiency invariant of
particular, blockchain-driven supply chain networks may require a Cooka and Kressbc (1999) with Beasley’s unique allocation principle.
closed, private, authorised blockchain with a large but restricted num­ The new resource allocation and target-setting model focuses on mini­
ber of players, unlike the bitcoin blockchain (Breidbach and Tana, 2021) mising the gross deviation of ideal solutions. Furthermore, it minimises
and other blockchain-based financial applications (Shah and Murthi, the overall deviation of the ideal solution (Amirteimoori and Tabar,
2020; Balasubramanian et al., 2021), which may be open to the public. 2010), which increases the transparency of the supply chain (Astill et al.,
However, a more public set of relationships may also be viable (de 2019). Therefore, we make the following hypothesis:
Villiers et al., 2020; Park et al., 2020). The privacy standard should be H1: The use of a BCT-driven framework increases the resource
set up early in the process (Kimani et al., 2020). allocation that is positively related to the transparency of the OTSC

4. Research framework and hypothesis development


(ii) Competitive advantage (CA)
The RBV focuses on market gaps and discusses internal competencies
that help businesses achieve strategic advantages, while NT addresses Organic tea manufacturing is an industry with fragmented supply
dyadic relationships and the networks in which they are embedded. The chains and few standardised connections with business partners (Paul
RBV helps achieve competitive advantage by allocating resources, while and Mondal, 2021). BCT can increase supply chain efficiency (Musi­
NT (Treiblmaier, 2018) allows the pledged blockchain to establish gmann et al., 2020), which is crucial for gaining a competitive advan­
‘trustless trust’ (Werbach, 2018) – commodity trust and quality business tage. The competitiveness of the organic tea sector is closely related to
relationships. In this study, structural equation modelling (SEM) and sustainable production (Neri et al., 2021) and resource efficiency in the
analysis of moment structures (AMOS) approaches were used to develop supply chain (Frohlich and Westbrook, 2001). The society’s awareness
the computational power to elucidate an appropriate relationship of environmental damage and of the importance of environmental
among the identified latent variables (Fig. 2). conservation is steadily growing. Environmental impact mitigation must
be considered an efficiency measure for organic tea cultivation, along­
side cost control, network management, maximisation of benefits,
(i) Resource allocation (RA) strategic planning, and value-added services. Adopting transparency as
a priority may help the OTSC access new markets or persuade buyers to
Resource allocation is a particular challenge, especially in tea supply change or raise their purchasing standards, creating opportunities for
chain systems, which are complicated and unpredictable (Paulraj et al., competitive advantage (Ramirez et al., 2019). Thus, BCT can offer the
2008). Several resource allocation methods (Sharahi and Khalili-Dam­ OTSC a competitive advantage (Olatunji et al., 2019) that improves
ghani, 2019) and goal-setting applications have been described in the transparency (Ghode et al., 2020) by offering a revolutionary solution to
supply-chain literature in recent years. The use of blockchain-based determining the origin of the commodity (i.e., specifying the
resources can help plan schedules and trade-offs between inputs/out­ tea-growing region: Darjeeling green tea, Assam orthodox tea, Shizuoka
puts consisting of a series of production options, which increases the black tea, etc). Thus, we propose the following hypothesis:

Fig. 2. Research framework for a BCT-driven sustainable OTSC.

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

H2: The use of a BCT-driven framework increases the competitive Transparency depends on many elements of an effective OTSC,
advantage, which is positively related to transparency of the OTSC. including the source of raw materials (organic tea leaves), cost (organic
cultivation, made-tea production, and blending and packaging), in­
ventory management, and physical logistics (Kwon and Kim, 2018;
(iii) Commodity trust (CT) Sunny et al., 2020). Effective use, and, crucially, knowledge sharing
with suppliers (Kaipia and Hartiala, 2006) can provide advantages,
Trust is defined as a psychological condition characterised by the including the reactivity of the OTSC stakeholders (Kim et al., 2006),
willingness to tolerate vulnerability in exchange for favourable expec­ improved measurements and key metric design (Caridi et al., 2013),
tations about another’s intentions or actions (Fawcett et al., 2012). improved efficiency, improved customer support, and overall better
Commodity trust is a multi-faceted concept. It can exist in one dimension business performance (Frohlich and Westbrook, 2001). Anyone with
between commodities and persons; inside a single organisation; and access to the system can see every transaction and its accompanying
between organisations (Tadesse and Kassie, 2017). Trust decreases the value. In a blockchain, each node, or user, is identified by a 30-plu­
perceived level of risk in a scenario, rather than the actual risk (Jena s-character alphanumeric address (Murck, 2017). Users have the op­
et al., 2018). Within an organisation, commodity trust may be actively tion of remaining anonymous or revealing their identity to everyone
controlled. Because active management develops processes and struc­ else. Transactions take place between addresses in the blockchain. In
tures, commodity trust can also be managed by this method (Balasu­ BCT, the digital block forms a chain that allows authentication of re­
bramanian et al., 2021). Commodity trust in supply chains is focused sources and ensures information transparency (Venkatesh et al., 2020).
mainly on product awareness, proof of trust (Ryciuk, 2017), and the Verifiability and enforceability are also improved through blockchain
trustee’s attributes, such as product efficiency or performance. The deployment to monitor sustainable OTSC performance. The BCT sup­
OTSC cannot be developed or sustained without trust in organic goods, ports smart contract governance, encouraging OTSC stakeholders to
and the provision of trust is at the heart of BCT innovation. A dynamic simplify their credential contracts and procedures. Therefore, the
model of a BCT system establishes a trust mechanism to improve OTSC blockchain’s transparency helps stakeholders access accurate and reli­
cooperation, innovation, and organisational ability. Customers always able information, while reducing the number of inaccurate data
want to know where and how products are manufactured and stored. (McConaghy et al., 2017; Saaty and Ergu, 2015). This improves the
Blockchain trials in supply chains have contributed to increasing reli­ sustainable performance of the OTSC. Therefore, we propose the
ability (Caridi et al., 2013). Thus, by exhibiting qualities such as following hypothesis:
authenticity, precision, honesty, serviceability, promise-keeping, and H5: The transparency of the supply chain is positively related to the
behaviour consistent with demands, the BCT-driven OTSC can ensure sustainable performance of the OTSC
commodity trust (Stanley et al., 2012), increasing the reliability of the
chain. Accordingly, we propose the following hypothesis:
H3: The use of a BCT-driven framework increases the commodity (vi) Reliability (RE)
trust, which is positively related to the reliability of the OTSC
The supply chain system’s reliability depends on its structure and
consistency (Zhang et al., 2020). The efficiency of the supply chain
(iv) Quality of the business relationship (QBR) operation affects the possibility of meeting the end customer’s re­
quirements within lead time, volume, and quality. The blockchain’s
The quality of the business relationship (QBR) is described as a fundamental properties include reliability and transparency, pseudo­
cognitive assessment of many aspects of inter-firm connections that nymity, and irreversible non-reputability (Centobelli et al., 2020). These
OTSC providers establish and manage with their worldwide clientele qualities lead to higher-level derived concepts with significant man­
(Lo et al., 2018). Relationship quality and total purchasing intention are agement implications, such as secure authentication, trust, confidenti­
both influenced by reliability. Numerous studies have been undertaken ality, privacy, compliance, quality, consent, reliability, originality, and
using a range of corporate situations to conceptualise the intrinsic na­ accountability, all of which might have important consequences for the
ture of the QBR (Martha and Lisa, 1993). Although many findings from OTSC (Sidorov et al., 2019). In BCT, all transactions are time-stamped
this research demonstrate the QBR’s academic and practical relevance, and cannot be changed once registered, protecting the OTSC opera­
it is still unclear what influences the QBR, and, as a result, this subject tions from tampering and fraud (Lee and Pilkington, 2017). Thus, BCT
continues to draw scholarly and executive attention (Younis et al., ensures immutability for all the transactions. The BCT decreases lead
2020). Consistency of inter-organisational relationships is crucial to time and improves flexibility, boosting the reliability of the OTSC sys­
achieving OTSC reliability (i.e., relationship quality) (Kim et al., 2006). tem. Furthermore, BCT is transforming relationships between organic
The integration of the upstream OTSC is affected by the relationship’s tea consumers, organic made-tea manufacturers (tea processing fac­
continuity (top management assistance and relational governance). tories) (Carnovale and Yeniyurt, 2014), and organic branded-tea pro­
Supplier production fully mediates the link between top management ducers (tea companies), as well as relationships between organisations.
support and upstream OTSC, as well as some of the interactions between The origin of the organic tea can be verified without third-party certi­
downstream and upstream OTSC (Kaipia and Hartiala, 2006). BCT fication, as all transactions reported are time-stamped and tamper-proof.
provides the upstream reliability that customers demand from the OTSC; The blockchain, therefore, forms a reliable network for all OTSC
for example, by logging data on whether specific organic tea types have stakeholders, and helps increase the sustainable performance of the
been produced authentically, or whether tea leaves are picked from the OTSC. Thus, we make the following hypothesis:
organic gardens of the correct region (Francisco and Swanson, 2018). H6: Reliability of the supply chain is positively related to the sus­
Transactions of the blockchain system are continuously checked, tainable performance of the OTSC
approved, and stored in digital blocks linked to the OTSC. Hence, we
make the following hypothesis:
H4: The use of a BCT-driven framework increases the quality of (vii) Sustainable performance of the OTSC (SPOTSC)
business relationships that are positively related to the reliability of the
OTSC The BCT’s benefits are primarily due to the technology’s decentral­
ised, consensus-based acceptance mechanism, which contributes to
performance management through the simultaneous immutability and
(v) Transparency (TR) transparency of vital OTSC processes (Bastian and Zentes, 2013;

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

Kshetri, 2018). BCT can also increase the organisational stability of the Table 1
OTSC (Khan et al., 2018), and support market success based on an or­ List of the field visits.
ganisation’s defined objectives. Furthermore, BCT can support govern­ Research Fields Name
ments through successful resource conservation policies in a sustainable
Tea Research Institute in Jorhat, Tocklai Tea Research Institute
environment (Venkatesh et al., 2020). By improving capacity and min­ Assam
imising uncertainty and risks, BCT promotes OTSC sustainability 6 tea estates in Dibrugarh, Desam Tea Estate, Langharjan Tea Estate,
(Saberi et al., 2019). BCT capabilities can assist with routine processes Assam Naharkatia Tea Estate, Nadua Tea Estate, Thanai
and procedures, reduce lead and cycle time, optimise production, and Tea Estate, Dikom Tea Estate
5 tea estates in Sivasagar, Assam Ajoy Chetia T.E, Duwari Tea Estate, Azim Tea
allow mass customisation. BCT processing increases the agility and Estate, Humali Tea Estate, Surab Tea Estate
resiliency of OTSCs (Ciccullo et al., 2018). BCT allows the organic 9 tea estates in Sivasagar, Assam Hunwal Tea Estate, Lakhibari Tea Estate, Kolony
supply chain to be optimised through improved data quality manage­ Tea Estate, Praphat Tea Estate, Kharjan Tea
ment and automated data acquisition (Song et al., 2017; Treiblmaier, Estates, Bagrodia Tea Estate, Towkok Tea Estate,
Banwaripur Tea Estate, Gatoonga Tea Estate
2018). Thus, BCT positively influences four types of OTSC sustainability:
2 tea estates in Golaghat, Assam Hathikuli Tea Estate, Aalmat Tea Estate
productivity, economic, environmental, and social sustainability (Song 3 bought-leaf factories in Jorhat, Deha Tea Factory, Dhanshree Tea Factory,
et al., 2017). Nevertheless, the use of BCT for sustainable OTSC can be Assam Titabar Tea Factory
challenging, especially in developing economies. 41 Small Tea Gardens (STGs) in 11 STGs in Dibrugarh, 9 STGs in Sivasagar, 18
four districts of Assam STGs in Jorhat, and 3 STGs in Golaghat
A tea auction centre in West Kolkata Tea Auction Centre
5. Research methodology Bengal, India

This study has used a mixed research method, combining qualitative


and quantitative data, to assess the impact of blockchain technology on the proposed research.
OTSC process integration. The research method consists of five stages,
which are shown in Fig. 3.
5.2. Development of survey projections

5.1. Data collection site The research is based on a three-year detailed study in Assam. The
development and design of questions and projections are central to
The data were collected from the north-eastern Indian state of Assam ensuring the value, validity, and reliability of studies (Mitchell, 1996). A
(Table 1). Assam tea is famous for its texture, flavour, aroma, and colour comprehensive and well-established multi-stage method was therefore
(Sarma, 2011). The study is based on a three-year in-depth field survey selected to generate concise and thought-provoking projections. The
of the Assam tea industry (Appendix-1). The world’s largest tea plan­ illustration of the projection design process is shown in Stage 2 of Fig. 3.
tation is found in the foothills of the Eastern Himalayas, in the Brah­ To identify critical factors concerning the future of BCT in supply
maputra Valley (Roy, 2011). Assam produces 52 per cent of India’s tea chains, relevant journal and conference articles (Kopyto et al., 2020;
(Tea Board of India, 2015) and about 1/6 of the world’s tea (Tea Board Musigmann et al., 2020; Tsolakis et al., 2020) and online forum posts
of India, 2017). Assam tea accounts for around 50 per cent of the foreign were screened. A small-scale survey was conducted among OTSC experts
exchange earned by India’s tea industry (Groosman, 2011). The total and academics to identify additional factors and reconstruct the selec­
number of tea gardens in Assam is around 41,000, covering 307,080 tion process, ensuring that all relevant concerns were identified for
hectares (Paul and Mondal, 2019). This large quantity of tea gardens and projection development.
factories means that the state was the most suitable area for carrying out Scientists from the Tocklai Tea Research Institute and academics

Fig. 3. The stages of research process.

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

who have published relevant articles on BCT were invited to participate justified on the grounds that these experiments tested hypotheses based
in a small-scale survey. Experts were asked about the future of the OTSC on a clear theoretical context, based on Hew et al. (2019). The data
and the impact of BCT in the OTSC. The survey continued until responses collected also meet the multivariate criteria for SEM analysis: they are
became repetitive and there were diminishing returns of new elements. normally distributed and have no problems with multicollinearity (Kock
To ensure that the projections were applicable to aspects of BCT beyond and Lynn, 2012). Due to the self-reported nature of the data, common
the technical features, the multilevel perspective of Geels (2004) on method bias (CMB) may be a concern (Podsakoff et al., 2012); it was
technology transformation was also used to include aspects of society, tested for using a single-factor Harman test.
nature, economy, accepted practices, and strategy.
Finally, as suggested by Warth et al. (2013), five academics and four 6. Results
OTSC experts with significant conceptual and subject-specific expertise
in this field pre-tested the questionnaire, which verified the predictions Structural equation modelling (SEM), a convenient statistical tool,
for accuracy, clarity, reasonableness, and conceptual adequacy to ensure was used to evaluate the measurement and structural models concur­
the validity of identity and content. Their suggestions resulted in minor rently. We ran factor the analysis, multiple regression analysis, and
modifications to the wording and structure of the questionnaire. The hypothesis testing at the same time. The collected data were analysed
final collection contained 22 projections regarding the impact of BCT on and interpreted in a two-stage process, using both a measurement model
OTSC. and a structural model.

5.3. Selection of experts 6.1. Multicollinearity

The reliability of the results of the survey depends heavily on the Data on the occurrence of multicollinearity effects was tested before
choice of panellists. To achieve a high degree of heterogeneity and the CFA. We evaluated inflation variance factors and tolerances. The
reduce the cognitive biases of different participants, such as framing results show that variance factor values were below 10 and that toler­
bias, anchoring bias, desirability bias, and the bandwagon effect, the ances were above 0.10, confirming the absence of multicollinearity, as
expert panel was chosen systematically. Heterogeneity was achieved in previous studies (T. S. Hew and Kadir, 2016).
through the participation of experts from various domains, such as lo­
gistics, information technology, small tea gardens, tea estates, and 6.2. Common method bias
bought-leaf factories, and through the inclusion of designated experts
from academia, the Tea Research Institute, the Tea Auction Centre, and Since the data for all the variables were collected using the same tool,
the Tea Board of India. In total, 659 experts (including tea-estate man­ there is a possibility of common method bias. Harman’s single-factor test
agers; employees of the tea estates and bought-leaf factories; owners of (Harman, 1976) was used to check for this problem in our dataset, as in
small tea gardens; and scientists from the Tocklai Tea Research Institute) previous studies (Talwar et al., 2020). We found that 48.97 per cent of
with experience related to the research area were asked to participate in the total variance was explained by a single factor, which is less than 50
the panel of experts. To ensure that only experts were included in the per cent.
panel, only participants with genuinely expert knowledge of the tea
supply chain were selected. The participants were fully informed about 6.3. The measurement model validity
the study’s context before the survey, and were assured that their private
information would not be shared. The CFA was performed to assess the validity and reliability of the
The Mann–Whitney U-Test was used to check for potential non- measures. The data collected from different respondents were checked
response bias. In this phase, estimates of early and late respondents for normality. Skewness was within the ±3 range, and for all variables
were compared, as it can be presumed that late respondents show the observed, kurtosis was within ±10 (R.B. Kline, 2011). The
characteristics of non-respondents (Wagner and Kemmerling, 2010). Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy (0.948) in­
However, there were no significant differences (p < 0.05), and no dicates a high-shared variance and a relatively low uniqueness invari­
non-response bias could be found by comparing the differences in ance. Bartlett’s test of sphericity was strongly validated (chi-square =
response to all 22 projections. 4026.275, df = 231) (Cooper and Schindler, 1998). The sample size
adequacy confirms that this dataset is suitable for factor analysis.
5.4. Execution of the quantitative study The Cronbach alpha coefficient was considered appropriate for all
constructs, as alpha > 0.7 (Nunnally and Bernstein, 1994). This means
A questionnaire-survey methodology was used in this research, that the internal consistency of the instruments used was adequate. To
where the quantitative analysis of the panellists’ evaluations was carried confirm the existence of particular patterns of relationships between
out. Prior appointments had been made to increase the response rate. observable variables and factors, confirmatory factor analysis (CFA) was
659 questionnaires were distributed personally to the selected experts. used. The results show that the goodness-of-fit indices were adequate
Each expert was asked to rate the projections based on a metric scale of (χ2/df = 1.379, RMSEA = 0.035, CFI = 0.982, TLI = 0.978, IFI = 0.982,
0–100 per cent, depending on their estimated likelihood of occurrence. NFI = 0.937). For each construct, the minimum number of items should
They were also asked to rate the projections’ impact on the OTSC and have been three, and all calculated standard factor loading was above
their desirability on a 5-point Likert scale. In addition, respondents had a 0.70. The average variance extracted (AVE) exceeded the recommended
chance to add qualitative justifications for their quantitative estimates level of 0.5 for all constructs, indicating strong convergent validity. Also,
provided. After discarding incomplete replies, 305 valid responses were each construct’s composite reliability (CR) was above 0.70 (Table 2)
used for analysis. (Hair et al., 2016).

5.5. Data analysis 6.4. Structural equation modelling results

The data were analysed through IBM SPSS and AMOS using a two- The study tested the proposed hypotheses after analysing the validity
step methodology. First, a confirmatory factor analysis (CFA) was car­ of the theoretical model’s measurement scales. The structural model was
ried out to determine the measures’ reliability and validity. Subse­ evaluated using analysis of moment structures (AMOS). The maximum
quently, structural paths were analysed to evaluate the hypotheses. The probability estimator was used to estimate the standardised regression
use of structural equation modelling (SEM) as a data-analysis tool was weight and the probability values that indicate the significant path. First

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

Table 2
Results of confirmatory factor analysis.
Items Skewness Kurtosis Factor loading Constructs α* AVE CR

RA1 − 3.037 9.957 0.778 Resource allocation 0.807 0.605 0.705


RA2 − 2.961 8.711 0.830 (RA)
RA3 − 2.709 7.302 0.686
CA1 − 2.519 6.091 0.852 Competitive advantage 0.897 0.746 0.898
CA2 − 2.900 9.408 0.872 (CA)
CA3 − 2.518 6.456 0.867
CT1 − 2.100 4.872 0.729 Commodity trust 0.795 0.565 0.796
CT2 − 1.744 3.728 0.774 (CT)
CT3 − 1.860 3.832 0.752
QBR1 − 2.509 6.974 0.730 Quality of business relationship 0.764 0.525 0.768
QBR2 − 2.538 8.003 0.729 (QBR)
QBR3 − 1.964 4.094 0.714
TR1 − 2.809 9.222 0.769 Transparency 0.808 0.591 0.812
TR2 − 2.194 5.682 0.762 (TR)
TR3 − 2.147 5.169 0.775
RE1 − 1.750 4.094 0.799 Reliability 0.829 0.619 0.830
RE2 − 1.825 3.905 0.772 (RE)
RE3 − 1.602 2.704 0.790
SPOTSC1 − 1.851 3.591 0.706 Sustainable performance of OTSC 0.862 0.617 0.865
SPOTSC2 − 2.206 5.053 0.851 (SPOTSC)
SPOTSC3 − 1.911 3.553 0.799
SPOTSC4 − 2.182 4.963 0.780

α* = Cronbach’s Coefficient α.

the structural model was validated, and then the relationships between the positive impact of blockchains on the supply chain of organic tea.
variables were analysed using structural equation modelling (SEM). The study’s findings have significant impact for policymakers and
As shown in Fig. 4, the proposed BCT-driven OTSC model improved stakeholders involved in defining BCTs’ behavioural patterns in the
the sustainable performance of OTSC (SPOTSC), with TR and RE playing context of the OTSC. We conclude that integrating BCT into the OTSC
a crucial role. The data imply that the SPOTSC cannot be isolated from process improves sustainable performance.
RA, CA, CT, and QBR. The framework positions the role of BTC in such a The model was checked to verify the relations between the different
way that it links the TR and RE in the newly-formed OTSC framework. parameters. The modelling of the structural equation of this study was
An integrated description of the core components of the OTSC processes based on covariance. Fig. 4 presents the outcomes of the structural
within a BCT was adapted from the recent literature and from the model path analysis done in this study. The findings from the structural
analytical work of the various supply chains. The results demonstrate model are shown in Table 4.

Fig. 4. The structural equation model of a BCT-driven OTSC.

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

6.4.1. Evaluating the goodness‑of‑fit criteria Table 4


Comparative fit index (CFI) points to a good fit value of 0.974 when Path coefficient estimates.
the required value is matched with a goodness-of-fit index (GFI) of Hypothesis Structural Coefficients t- p- Result
0.923. It is marginally smaller than the recommended value of 0.90. The equations (β) value value
root mean square approximation error (RMSEA) is 0.041, which in­ H1 RA → TR 0.636 6.456 *** Supported
dicates good data accuracy and good fit. The measured value of Chi- H2 CA → TR 0.291 3.417 *** Supported
square/degrees of freedom (CMIN/DF) is 1.511, indicating strong H3 CT → RE 0.469 4.227 *** Supported
model fit. The values of Goodness-of-fit index (AGFI) (0.902), Tucker H4 QBR → RE 0.383 3.488 *** Supported
H5 TR → SPOTSC 0.843 6.114 *** Supported
Lewis index (TLI) (0.970), Incremental fit index (IFI) (0.974), Parsi­ H6 RE → SPOTSC 0.402 5.283 *** Supported
monious normed fit index (PNFI) (0.791), and Parsimonious goodness-
of-fit index (PGFI) (0.719) show that the proposed model is statisti­ Notes: *** Significance level: p < 0.01.
cally acceptable, as the resulting parameters are above or very close to
the recommended range of values for good fit (Table 3). Hypothesis 4 proposes that quality of the business relationship (QBR)
has a positive impact on reliability (RE) for the sustainable performance
6.4.2. Path analysis of the OTSC. The standardised coefficients (β) of quality of the business
This method helps to evaluate the relationship between the key relationship and reliability are 0.383, and the t-value is 3.488, p < 0.01,
factors that influence the BCT-driven OTSC. We used SEM to test six indicating statistical insignificance. The results support this hypothesis.
hypotheses to evaluate the impact of RA, CA, CT, QBR, TR, RE, and Hypothesis 5 predicts that transparency (TR) has a positive impact
SPOTSC. Table 4 summarises the significance of the structural re­ on the sustainable performance of the OTSC (SPOTSC). The standardised
lationships (t-values) and the coefficients of the path. In the structural coefficients (β) of transparency and sustainable performance of the
model, the correlations between the constructs were all significant. OTSC are 0.843, and the t-value is 6.114, p < 0.01, indicating statistical
Hypothesis 1 predicts that resource allocation (RA) has a positive insignificance. The results support this hypothesis.
impact on transparency (TR) for the sustainable performance of the Hypothesis 6 suggests that reliability (RE) has a positive impact on
OTSC. The standardised coefficients (β) of resource allocation and the sustainable performance of the OTSC (SPOTSC). The standardised
transparency are 0.636, and the t-value is 6.456, p < 0.01, indicating coefficients (β) of reliability and sustainable performance of the OTSC
statistical insignificance. The results support this hypothesis. are 0.402, and the t-value is 5.283, p < 0.01, indicating statistical
Hypothesis 2 proposes that competitive advantage (CA) has a posi­ insignificance. The results support this hypothesis.
tive impact on transparency (TR) for the sustainable performance of the These results validate hypotheses H1–H6 of this study. Therefore, the
OTSC. The standardised coefficients (β) of competitive advantage and influence of BTC on the OTSC is positive.
transparency are 0.291, and the t-value is 3.417, p < 0.01, indicating
statistical insignificance. The results validate this hypothesis. 7. Discussion and conclusions
Hypothesis 3 suggests that commodity trust (CT) has a positive
impact on reliability (RE) for the sustainable performance of the OTSC. The study results support H1–H6, revealing that resource allocation,
The standardised coefficients (β) of commodity trust and reliability are competitive advantage, commodity trust, and quality of the business
0.469, and the t-value is 4.227, p < 0.01, indicating statistical insigni­ relationship values have significant positive associations with trans­
ficance. The results confirm this hypothesis. parency and reliability values, which also have positive associations
with the sustainable performance of a BCT-driven OTSC.
Table 3
With globalisation, OTSC management has become an incredibly
Goodness-of-fit indices of structural model testing using AMOS. complicated job. Neither consumers nor tea branding companies have
full transparency and reliability for all the components in the chain.
Good-of-fit index Abbreviation Recommended range Resultant
statistics of values for a good fit value
Since products travel through multiple regions, it is not easy to track
every channel through which they pass. Because of this lack of trans­
Absolute Fit Measure
parency and reliability, tea companies have no way of identifying
Chi-square test χ2 p > 0.05 (Marsh and 297.723
Hocevar, 1985) inefficient intermediaries that hamper customer satisfaction and inflate
Degrees of freedom df df > 0 (Bentler, 1990) 197 consumer prices. On the other hand, maintaining good relationships
Chi-square/degrees χ2/df χ2/df < 3 (Marsh and 1.511 with suppliers involved in the network is crucial for handling the OTSC.
of freedom Hocevar, 1985) While this is a smaller issue for domestic players, it is a crucial
Goodness-of-fit index GFI GFI ≥ 0.90 (Chau, 1997) 0.923
Adjusted goodness- AGFI AGFI ≥ 0.90 (Chau, 0.902
component of global supply chain network management. When they are
of-fit index 1997) globalised, with a broader number of suppliers, companies need to
Root mean square RMSEA RMSEA < 0.08 (Byrne, 0.041 maintain the trust of their suppliers and clients, while at the same time
error of 2013) they have no control over them. As a result, companies cannot effec­
approximation
tively manage their own business, as they are dependent on suppliers to
Increment fit measure
Tucker Lewis index TLI TLI ≥ 0.95 (Rex B Kline, 0.970 deliver products. It is therefore crucial for businesses to weed out un­
2016) reliable suppliers.
Normed fit index NFI NFI ≥ 0.95 (Hooper 0.928 BCT is a distributed ledger that operates on the principles of game
et al., 2008) theory, peer-to-peer technology, and cryptography. Its decentralisation
Comparative fit index CFI CFI ≥ 0.90 (Segars and 0.974
Grover, 1993)
is the ideal solution to the transparency issue. For instance, in the BCT-
Relative fit index RFI RFI > 0.90 (Hooper 0.916 driven OTSC, companies can record information about the tea’s culti­
et al., 2008) vation area, organic garden certificates, made-tea production details,
Incremental fit index IFI IFI > 0.90 (Hooper et al., 0.974 branding, current product location, price, and date, as well as other
2008)
relevant organic tea information. This information, shared via the public
Parsimonious fit measure
Parsimonious PNFI PNFI > 0.50 (Hooper 0.791 ledger, can inform all stakeholders on both the status of the transit and
normed fit index et al., 2008) the origin of the items.
Parsimonious PGFI PGFI > 0.50 (Hooper 0.719 Once the information is recorded in a block in the chain, the
goodness-of-fit et al., 2008) immutability feature ensures that it cannot be tampered with without
index
altering the subsequent blocks and without the consensus of most users

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

in the network. The security level that the blockchain allows owing to its the need for studies that focus on diverse geographies and cultures.
immutable nature ensures that the recorded information cannot be
altered. In the case of the OTSC, the availability of trustworthy shared 7.2. Practical implications
records ensures that stakeholders can maintain trust among themselves.
The following are undoubtedly significant advantages of the BCT- Organic tea growers and producers are interested in encouraging the
driven OTSC: streamlined business processes; improved supply chain general public to consume organic tea from an authentic source. The
visibility; improved channel material traceability; a competitive edge; industry can benefit from restructuring the OTSC by adopting BTC.
reduced communication errors and improved collaboration between There are three key messages.
parties; improved trust and transparency between business parties; First, given that transparency and reliability are the main drivers of
prevention of theft and piracy; and increased customer satisfaction. sustainable performance, BCT can increase the OTSC’s customer base by
Therefore, it is evident that the adoption of a blockchain can provide the promoting the organic tea brand to the existing tea consumers. More­
OTSC with numerous advantages that can help businesses to remain over, the use of BCT can lead to continuous quality care improvements,
relevant in the market. which will attract and retain consumers and ultimately increase the
Although BCT has immense potential in OTSC management, one of supply chain’s customer base and reduce redundancies.
the key challenges in a BCT-driven OTSC is the balance between data Second, this study has shown that sustainable performance,
disclosure and confidentiality: collaboration versus competition. To measured in terms of transparency and reliability, improves the OTSC
protect confidential data, supply chain stakeholders need to avoid process. Operators in the BCT-driven OTSC should therefore work on
transparency (Wang et al., 2019). Confidentiality of sensitive data ways to accelerate organic-tea supply and to control supply-related
should be protected in the made-tea manufacturing factories and information.
blending units. However, transparency is central to marketing and Third, this study is the first formal study focusing on the OTSC. It will
branding in this industry, so BCT poses a significant challenge when help organic tea growers and manufacturers to identify the key strate­
balancing transparency and data confidentiality (Queiroz and Fosso­ gies for responsible practices and to find opportunities to increase this
Wamba, 2019). supply chain’s sustainable performance. An additional strength of the
In the supply chain, the implementation of BCT is a progressive study is its focus on the cryptocurrency supply chain, which extends
paradigm shift that encourages players to change their attitudes and from traditional labourers to high-end consumers.
become more competent (Queiroz and FossoWamba, 2019). Despite the
known barriers (Yadav et al., 2020), the adoption of BCT in OTSC is 7.3. Conclusion, limitations, and future research
underway. The adoption behaviour (Muhammad et al., 2021) of all
OTSC stakeholders will improve over time, and trust will grow among This study contributes to the research on BTC in the context of the
them. This study shows that the chosen parameters, such as trans­ OTSC to improve the OTSC’s sustainable performance. This research is
parency and reliability, contribute to the sustainable performance of the essential from the supply chain sector’s perspective, since scholars have
BCT-driven OTSC. However, it should be remembered that the problems argued that it is critical to understand various aspects of stockholders’
faced in developing countries vary with their technological innovation engagement during the organic product supply. We have found that the
rate (Soni et al., 2021). BTC can play a vital role in the supply chain. The empirical investigation
justifies the adoption of the BTC by the various stakeholders.
7.1. Theoretical implications Despite its significant achievements, this study has some limitations
that should be noted.
The four vital theoretical contributions of this work are as follows. First, the study included 41 small tea gardens, 22 tea estates from 4
The main contribution is the BTC-driven OTSC model. This model is also separate tea-developing districts of Assam, and a tea research institute.
applicable in various other contexts, such as the Agro supply chain, the Correspondingly, questionnaires were administered to 305 respondents
green supply chain, and the beverage supply chain. The model suggests through a survey. Comprehensive sample data would have made the
that the adoption of BCT in the supply chain can help increase trans­ resulting model more accurate.
parency and reliability, which positively affect the supply chain’s sus­ Second, in certain instances, an inappropriate understanding of the
tainable performance. roles and responsibilities of tea supply chain participants may have
Second, this study responds to the call for more research on BTC in resulted in respondents’ insufficient replies, and some assumptions
the context of supply chains. In the current literature, blockchain studies made during the development of the BCT-driven OTSC model may have
have focused mainly on implementing the technology, while ignoring harmed its diversity.
other dimensions of the supply chain’s sustainable performance. Third, this study has used a cross-sectional method, so it depends on
Notably, considering the active use of BTC in the context of banking and self-reported data collected at one point in time. This increases the
cryptocurrencies and its limited use in the general supply chain, no probability of biased findings. In the future, researchers could use other
analytical research has established or analysed the sustainable perfor­ research designs, such as longitudinal and experimental studies, to
mance associated with the OTSC. This study paves the way for future overcome this limitation and confirm our results.
researchers to extend the use of BCT to other services in the supply chain There are many promising pathways for future research. First, it
domain, such as online purchase and logistics management. would be productive to discuss how BCT impacts social sustainability
Third, from a conceptual point of view, this study’s exploratory issues, especially the legal and ethical implications of its adoption in the
mixed-method approach to extending existing theories (RBV and NT) to OTSC. Second, to provide strategic insight into the implementation
the supply chain model promotes the use of BTC to adapt existing the­ dynamics, we recommend a comparative analysis of BCT enablers and
ories to new contexts. The proposed model could enable future re­ obstacles in different cultures and differently-sized tea-manufacturing
searchers to adapt similar theories to the contexts of other product factories. Third, in future experiments, investigating non-linear re­
networks and services, especially in the supply chain field. lationships using instruments such as artificial neural networks may be
Fourth, the research provides information about the Indian tea considered.
supply chain and the importance of BCT adoption for the OTSC in the
Indian context. It is essential for researchers to understand the behav­ CRediT authorship contribution statement
iour of the OTSC, as India represents a large segment of tea customers
worldwide. This contribution is critical because prior studies have Tripti Paul: Conceptualization, Methodology, Data curation, Formal
pointed out geographical disparities in the supply chain, underscoring analysis, Writing – original draft. Sandeep Mondal: Supervision, Data

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T. Paul et al. Technological Forecasting & Social Change 173 (2021) 121163

curation, Writing – review & editing. Nazrul Islam: Supervision, Rakshit: Writing – review & editing.
Conceptualization, Validation, Writing – review & editing. Sandip

Supplementary materials

Supplementary material associated with this article can be found, in the online version, at doi:10.1016/j.techfore.2021.121163.

Appendix-1

Field visit schedule

Method Field Type / Interact With Observation / Discussion Area of the Tea Supply Chain No. of Visit/
Interaction

Observation Estate-Tea-Gardens Tea cultivation process and plucking strategy 22


Small-Tea-Gardens Tea cultivation process and plucking strategy 41
Estate-Tea-Factories ‘made-tea’ processing strategy 22
Bought-Leaf-Factories ‘made-tea’ processing strategy 03
Kolkata Tea-Auction-Centre Collected the basic information about tea auction 02
Focus Group Laborers of the Estate-Tea-Gardens Plucking timing, plucking season, plucking strategy, and nursing of the tea plants 12
Discussion Laborers of the Estate-Tea-Factories Different phases of the ‘made-tea’ process 07
Plucking laborers of the Small-Tea-Gardens Plucking season, plucking timing, and plucking strategy 17
Laborers of the Bought-Leaf-Factories Different phases of the ‘made-tea’ process 08
Interview Employee of the Small Tea Gardens Plucking and pruning strategies 24
Small Tea Growers Limitations/challenges faces during cultivating, harvesting, and selling of the Tea 37
Leaves
Tea-Leaves-Agents Selling and buying opportunity of the plucked Green Tea Leaves 07
Supervisors of the Tea-Estates-Gardens Plucking, pruning, and nursing strategies 16
(plucking laborers are working under a
supervisor)
Assistant Managers (field laborer manager) of Limitations/challenges face during cultivating and harvesting 08
the Estate-Tea-Factories
Assistant Managers (field manager) of the Factors responsible for producing the best quality GTLs and ‘made-tea’ (plucking 06
Estate-Tea-Factories standard, day-of-plucking, organic cultivation, nursing the Tea plants, duration
between plucked Green Tea Leaves, and start processing)
Assistant Managers (administrative manager) Use of Logistic and Logistic cost; Distribution channel 07
of the Estate-Tea-Factories
Managers of the Estate-Tea-Factories Roll of the Tea Leaves Agents, Made Tea Agents and Tea Brokers; Roll and 05
responsibilities of the individual players of the Tea Supply Chain
Assistant Managers (administrative manager) Use of Logistic and Logistic cost; Distribution channel 06
Bought-Leaf-Factories
Managers of the Bought-Leaf-Factories Roll of the Tea Leaves Agents, Made Tea Agents and Tea Brokers; Roll and 03
responsibilities of the individual players of the Tea Supply Chain
Scientists of Tocklai Tea Research Institute Role of the Tea Research Centers in tea cultivation and processing; Quality of the 03
finished Tea
Distributors and Retailers Blending and packing; Distribution channel 11
Tea Consumers Purchase trends 14
Informal Made Tea Brokers Roll and responsibilities of the Tea-Auction-Centre; Distribution channel 02
Discussion Employees of the Reputed Companies’ Tea- Factors responsible for producing the best quality made-tea and finished Tea; 05
Estates Distribution channel
Employees of the Tea-Branding-Companies Factors responsible for producing the best quality the finished Tea; Distribution 04
channel

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Sandeep Mondal is a Professor at Indian Institute of Tech­ Nazrul Islam is Associate Professor of Innovation/Entrepre­
nology (Indian School of Mines), Dhanbad, India. His research neurship and an interdisciplinary pathway lead for global po­
focuses on Decision Sciences, Statistical Data Analysis, Statis­ litical economy at the University of Exeter Business School,
tical Modeling, Reliability Engineering, and Manufacturing England, UK. He holds a PhD in innovation management. His
Operations Management. He obtained his PhD in Operations research interest focuses on interdisciplinary fields: the man­
Management from Indian Institute of Technology (Indian agement of technology and strategy; innovation and entre­
School of Mines), Dhanbad, India. preneurship; the emergence and growth of disruptive and
digital technology-based innovation; SMEs business sustain­
ability. His research was published in the leading international
journals and he has complemented his peer reviewed journal
efforts with three books. Prof Islam’s research received awards
including the ‘Brad Hosler Award for Outstanding Paper’ from
USA; and the ‘Pratt and Whitney Canada Best Paper Award’ from Canada. Prof Islam serves
on the board of directors for Business and Applied Sciences Academy of North America. He
is currently an Associate Editor of Technological Forecasting and Social Change and Editor-
in-Chief of International Journal of Technology Intelligence and Planning.

Sandip Rakshit earned his Ph.D in Computer Science Engi­


neering from Jadavpur University, India. He has authored 6
books on the topic. He has garnered experience in educational
institutes and universities in India, UAE, Singapore and Africa.
He worked in Kaziranga University as founding Dean, School of
Computing Sciences, and Director and Full Professor at D.Y.
Patil Institute of Management, Pune and founding Dean and
full Professor in Sanjay Ghodawat University, India.

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