MBA Project Details:
Studies need to explore how digital currency, or cryptocurrency, may affect supply chain finance. Supply chain finance is a generic term for a variety of financing instruments that finance various parties within a supply chain and support the movement of capital behind a physical supply chain (Pfohl and Gomm, 2009).
Given that most established applications of blockchains are cryptocurrency, supply chain partners may start to trade and settle their payments using cryptocurrency. A particularly promising area where we may see cryptocurrency is as a data marketplace for IoTs. With the increasing number of IoT devices in supply chains, they generate tremendous volumes of data, and this data could provide business intelligence about supply chains. Big data is so valuable that it has become a new asset class for the supply chain management.
Early efforts in practice utilise distributed ledger technology (not necessarily the blockchain) to allow businesses to securely store, sell and access data streams generated by IoTs (see IOTA.org).
Research in supply chain finance is very limited (Caniato et al., 2016; Carter et al., 2015). Research that bridges blockchain and supply chain finance is nearly non-existent. As such, blockchain diffusion into the supply chain provides fertile ground for future research. Examining this emerging phenomenon would offer valuable insights about how blockchain supports financial collaboration across supply chain echelons, not just bilateral financial settlement. More importantly, it will allow us to interrogate the economic value of the blockchain and see whether it affects the bottom line of the business.
Suggested Reading: Wang, Y., Han, J. H. and Beynon-Davies, P. 2018. Understanding blockchain technology for future supply chains: a systematic literature review and research agenda. Supply Chain Management: An International Journal (10.1108/SCM-03-2018-0148)
Wang, Y.et al. 2018. Making sense of blockchain technology: How will it transform supply chains?. International Journal of Production Economics, https://doi.org/10.1016/j.ijpe.2019.02.002