The Impact of Blockchain Adoption on Supply Chain Transparency: The Mediating Role of Trust Among Supply Chain Partners

Abstract

Blockchain technology has transformed supply chain management through secure, transparent, and tamper-free record-keeping. In this research, the effect of blockchain adoption on supply chain transparency in Pakistan is examined with trust between supply chain partners acting as a mediator. Through a quantitative research approach, data were gathered from 300 manufacturing, logistics, and retail industry professionals. Structural equation modeling (SEM) was used to examine the links among blockchain adoption, trust, and transparency. The findings show that blockchain adoption significantly enhances supply chain transparency and that trust is a mediating factor. The findings are also applicable to Pakistan, where the inefficiencies of supply chains, fraud, and low stakeholder trust hamper performance. The research offers empirical support for blockchain to increase transparency through heightened accountability and real-time information exchange. The work contributes to the literature by targeting a developing economy, in which adoption is subject to singular challenges. Practical relevance indicates that Pakistani enterprises ought to put emphasis on incorporating blockchain to enhance trust and transparency within supply chains. Policymakers are able to leverage such findings to formulate frameworks that promote the use of blockchain, eventually inhibiting fraud and enhancing efficiency. This research highlights the role played by trust in the realization of blockchain's value for supply chain transparency, providing useful input for industry players in Pakistan and other similar emerging economies.

Keywords:

Blockchain, Supply Chain Transparency, Trust, Pakistan, Mediation Analysis