Challenges of blockchain implementation in SMEs’ supply chains: an integrated IT2F-BWM and IT2F-DEMATEL method

Electronic Commerce Research https://doi.org/10.1007/s10660-023-09696-3 Challenges of blockchain implementation in SMEs’ supply chains: an integrated IT2F‑BWM and IT2F‑DEMATEL method Moslem Alimohammadlou1 · Saeed Alinejad1 Accepted: 29 March 2023 © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2023 Abstract Blockchain technology is one of the prominent advancements of Industry 4.0 (I4.0), although the technology is difficult to be implemented, particularly in relatively small organizations. This study investigates the challenges of blockchain implementation in the supply chain management of small and medium-sized enterprises (SMEs). Therefore, this study investigates whether the first-generation blockchain can satisfy the increasing demands of organizations and companies. To overcome environmental uncertainty, the IT2F-BWM is used to evaluate the weight of the challenges and the IT2F-DEMATEL is used to check the internal relationships of the indices. The research results showed the relative importance of some obstacles such as “scalability”, “a shortage of human resources and implementation expertise/knowledge” and “financial and budgetary obstacles.” Meanwhile, “technical and infrastructural obstacles” imposed the highest degree of influence, and challenges caused by “a shortage of human resources and implementation expertise/knowledge” were identified as the most effective criteria. The novelty of the present study can be the examination of blockchain challenges in SMEs’ supply chain the use of a new method to combine fuzzy techniques. this study not only mentions the challenges but also accurately rank the challenges to the implementation of this emerging technology in SMEs When the main priorities are identified through more accurate techniques, organization managers will be able to design and implement a more accurate strategy to improve the efficiency of blockchain technology. Keywords Blockchain · Industry 4.0 · SME · IT2F-BWM · IT2F-DEMATEL · Type-2 fuzzy sets * Saeed Alinejad Moslem Alimohammadlou 1 Department of Management, Faculty of Economic, Management and Social Science, Shiraz University, Shiraz, Iran 13 Vol.:(0123456789) M. Alimohammadlou, S. Alinejad 1 Introduction Today’s competitive markets are undergoing extensive changes, contributing to increasing environmental uncertainty. Today’s enterprises use smart technologies to overcome environmental uncertainty, competitive pressures, and a lack of trust between supply chain members [1]. Enterprises may fail to keep up with the developments of the Fourth Industrial Revolution (otherwise called Industry 4.0) because they do not build sufficient infrastructure required for the expansion of smart technologies [2]. Presently, the world is transitioning to Industry 4.0, which represents a move toward environments that are digital, fully automated, and equipped with cyber-physical systems. Industry 4.0 includes many different technologies and innovations implemented in different sectors [3]. Industry 4.0 involves a wide range of supply chain opportunities led by many key empowering technologies such as artificial intelligence, machine learning, deep learning, and blockchain technology [4]. Considering the breadth of Industry 4.0 concepts, the new blockchain technology can well demonstrate the potential of this revolution. Distributed ledger technology (DLT), commonly known as “blockchain”, represents the most remarkable development in information technology and one of the most revolutionary innovations in this century [1]. It is necessary to understand blockchain and its value for the effective implementation of Industry 4.0. Some areas can rely on the future advantages of blockchain, such as financial transaction applications in which blockchain applications can foster trust [5]. Companies around the world are increasingly emphasizing blockchain innovations [6]. Blockchain is highly important as it can increase the level of information integration among different stakeholders as well as in the supply chain, as one of the main objectives of Industry 4.0 [7]. This technology secures decentralization and transparency. No entity should rely on the trustworthiness of only one counterpart. Blockchain technology can confirm the trustworthiness of a network through immutable transaction records and decentralized governance [8]. Resistance to data alteration is an important feature of blockchains. That is, blockchains prevent data censoring, deletion, or modification [9]. Gökalp et al. [10] state that 9% of organizations have invested in blockchain-based SCM systems that are still in their early stages. New studies exploring more than a thousand enterprises worldwide suggest that blockchain will be one of the top-five strategic priorities in the years to come. Although blockchain has been increasingly used over the past years, using and implementing such networks face various challenges and problems. Blockchain, then, is still going through its evolutionary phases and involves problems in terms of its operation, organization, technology, and policy [11]. Lohmer and Lasch [8] observe that most enterprises still rely on centralized information technology to store and manage data and are vulnerable to attacks in various ways. Small and medium-sized enterprises (SMEs) are among the companies that encounter problems in implementing smart technologies as well as modifying and adapting their business models. Blockchain can majorly 13 Challenges of blockchain implementation in SMEs’ supply chains:… contribute to SMEs by creating smart and sustainable supply chains. Due to its transparency and high level of control, blockchain-based supply chain management (SCM) reduces corruption and increases control over goods, especially in small businesses. SMEs, however, are faced with a wide range of serious issues. Cash flow is one of the major global challenges for SMEs. Blockchain technology aims to solve this problem in the framework of the “smart contracts” model, which facilitates enterprise activities in existing markets. Although smart contracts, which constitute the most important part of a blockchain, have attracted the attention of many researchers and have shown great progress in recent years, such contracts still involve challenges that need to be overcome [12]. Lakhani and Lansiti [13] have observed that the evolution of blockchain depends on some obstacles that must be overcome. As such, it would highly important to identify the obstacles associated with the supply chain and blockchain [14] The purpose of this study is to examine the challenges to the implementation of blockchain technology in SMEs by taking into account various dimensions and prioritize the challenges identified. In doing so, the study uses a combination of interval type-2 fuzzy techniques. The findings of this study can have significant theoretical and practical implications for (...truncated)